All Forum Posts by: Brian Lewis

Wright Patt does not off HELOC's on investment properties, FYI.

 I'll check them out. Thank you!

Hey Derek, thanks for the reply. Looking to use the equity in the FL SFR and put it to work. I'd like to have some funds available for quick access to jump on RE deals as I see them. My primary residence doesn't quite have the equity I need.

Hello BP

Does anyone have recommendations for a bank or credit union to contact for a HELOC on an investment property, that does business in Ohio (where I am located)? Huntington used to, and I called a few other places that I found through these forums but no luck. The property is in FL.

Thanks,

Brian

As others have stated, I believe house-hacking would be your best bang for your buck. I started this way, as I'm sure a lot of others on here did. It was one of the best financial decisions I've made.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Duplex built in 1964, 3 beds/1 bath up and down (rare find for duplexes in the area).

What made you interested in investing in this type of deal?

I wanted the cash flow and tax benefits. I lived in the home initially and fixed it up while renting out the other unit.

How did you find this deal and how did you negotiate it?

I found this through a realtor who specialized in multifamily properties. The backstory was the person who owned it lived in the home, and did not rent the other unit. He was elderly, passed away and the children put it up for sale. We reached a fair agreement but luck was on my side. I happened to visit the property a second time during a heavy rain, and there was water leaking in the basement. We used that to our advantage and price was reduced.

How did you finance this deal?

FHA, 3% down if I remember correctly. 3.9% interest rate

How did you add value to the deal?

I've kept up with improvements including new driveway, new doors, rebuilt balcony, removed asbestos tiles in basement, laid tile in the kitchen, re-did hardwood floors, repair leaks in basement, new hot water tanks, new/updated electrical panels. Long term tenants in both units.

What was the outcome?

It has been cash flowing since day one. I would highly recommend anyone that wants to get into real estate to house hack. I had no experience and knew no one else in the business. Trial by fire was the best way for me to learn.

Lessons learned? Challenges?

Doing your due diligence is key with renters. While there is always a risk with getting a bad renter, I've learned some things to look out for. If you have a gut feeling something is too good to be true, it probably is. I learned the hard way with the first tenant I ever had, that led to an eviction of non payment after about 9 months into a year lease. Treat tenants good, but never deviate from the lease.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The realtor I used was great. Unfortunately she got out of the business shortly after this deal to run a construction company with her husband,

Thanks @Edwin Epperson I thought so as well, but I've reach out to several lawyers, and one that I know personally, and none were interested in helping. The custodian I use with the SDIRA can certainly help with whatever needs done on their side. As you mentioned, I am looking more for help with the notes, loan agreements etc. I may take you up on that offer to talk through further. I'll reach out directly.

Hello all,

Does anyone have recommendations for an attorney that can handle the paperwork/logistics of lending from a SDIRA? 

Thanks,

Brian