All Forum Posts by: Brooke Spaulding

Hello - has anyone had an recent luck in finding a bank that give a HELOC on an investment property? It's worth about $285,000 and I owe about $150,000. I could do a cash out refinance which I intended to do first but my lender who offered the cash out said my options could be better with a HELOC. The fees associated and rates with an investment cash out he said are much higher. Thought I'd see if anyone here had experience with this in 2020. It is a STR so typical show the year lease doesn't work which makes it more complicated. Intended to do typical BRRRR and read the book but since STR it doesn't work the same even though profiting much more now than previous year. Property located in VT, many local lenders/ banks/ CU I've reached out to don't offer it. Thanks!

I'm following back up on this thread. I did not get a HELOC like anticipated (working with TD Bank on investment property). They wouldn't tell me, even after asking, when the appraisal would be of if I could provide them information. We put a ton of value on the interior that you wouldn't see from a drive-by (Covid) so it didn't appraise for as much we anticipated (brand new heating system, all new hardwood floors throughout, brand new modern kitchen, etc.). Most of the work on the house was interior which is super frustrating. I had said in advance happy to provide photos, information for the appraiser but they didn't care. Just offered a cash out refinance using the lower amount which would amount to nothing after all the closing costs. Anyone have any further suggestions?

@Filipe Pereira My husband and I met while at Wentworth, both studying architecture. I stopped after my Bachelor's and went to work with my co-op employer (graduating during the last recession, happy to have a good paying job in related fiedl), he continued to get his master's. I'm in facilities management while he's still working for a architecture firm. Investing started more as my passion but now we're investing together, buying houses, redesigning, renovating, and renting them. So far working out really well. Definitely helps us see potential when others can't in a property. 

Thanks for the updated post @Joe Roberts. I just started working with TD Bank after finding them on this list to do a HELOC on my investment property. Early on but so far so good with 75% LTV. Finding HELOC to be a much cheaper than doing a cash out refinance which was my original plan. Closing costs and prepaids were looking to be around $10,000 for cash out refi vs HELOC with minimal closing costs and can be rolled in if wanted.

Hi- I just moved out of my apartment into the house I'm renovating and we did a video walk thru for our landlord. We also took a bunch of photos and shared them with her. She was very happy and nobody had to enter our private space until we moved out. They have a new tenant lined up and nobody was at risk. Worked great, wish all showings were like this honestly for rentals. 

Thanks for the responses @Aaron K. and @Jay Hinrichs.

@Andrew Postell this response is very helpful. I'm going to read through it again. I know right now the lenders have been looking at the conventional loan options for qualifying us. Really interesting to know how the rules may be different from bank to bank and type of loans affecting that. I appreciate the response and will be digging in on your tips.

Hello, I've been around Bigger Pockets for quite awhile and taking in a lot of the content via podcasts and read some of the books including BRRRR.

Currently my husband and I are renting an apartment outside Boston (too expensive a market for us). We currently own a small home we are using as a vacation rental in Vermont. This is working really well for us and we've had it rented after rehabbing it almost a year. We were ready to move onto house #2 we would look to rehab ourselves again. We are getting our house appraised for a cash out refinance where we expect to get about $30,000 which is plenty for the next down-payment. All this was fine and we have a preapproval letter for more than we want to borrow. So we got house #2 under contract and now our lender isn't able to make it work. I've reached out to another lender to try different loan types. From all my research and working the numbers figuring debt to income and everything it all works. But the income from our VR apparently can't be counted for a least one whole year on taxes or up to 2 years proving stable income. Also one of the lenders also said we have to have 6 months reserves in the bank for the rental on top of whats required for the new property. This was after this lender approving us and seeing all of our financials. 

We have a strong plan for how we are trying to move forward with achieving financial freedom but if this is true I'm wondering how others make the BRRRR strategy work or ever move onto house #2 if they can't afford to house hack a primary? Is there any other way? Thought I understand all of this and had our ducks in a row but this is throwing me for a huge curveball.

Thanks!

Our goal for both my husband and I to be "free" is $8,000/ month. Vehicle to get there: vacation rentals and maybe add long term rentals. Currently about $500/ month profit and working on next deal.

I'm trying to do this now. We have one VR and I'm working on some finishing items to get it refinanced and then using that cash out for the next down payment. Because it will only be my second property, but an investment I'm having to put 15% down. It doesn't look like I will have a problem though.

Thanks @Martha Nowlan! About 15 minute drive to Sugarbush, our first winter (got it listed late December) was pretty good - expecting this year to be even better. We're finishing a few last small projects and then refinancing to pull the cash out for the next project. We are expecting it to be appraised around $225,000, but another close comp just sold for $250,000 so could be higher than we expected.