All Forum Posts by: Bryan Malone

@Brian Gerlach also not ruling out using the HELOC to BRRRR in order to pay it off the HELOC. I've actually come across an option to HELOC with a fixed rate up to 20 years (as long as its active for 3 years)

@Brian Gerlach I hear you on the location factor...My thought was to use the rental income to payback the HELOC, if I paid cash then the only loan outstanding is the HELOC. Whereas using it as a DP means there are two loans outstanding, which eats more into the income. Am I off on this line of thinking??? Also, someone else brought up the house hacking option to me in another post. But were in the same boat...The wife and I have too many kids for that! Lol

I should mention that the goal of this is to purchase a SFH for passive rental income

Hello all,

I'm considering taking out a HELOC to help finance my first deal in the Memphis area. Is it better to use the funds as a down payment on a conventional mortgage (potentially on a larger home that may be more expensive) or should I try to find a cheaper home that I can pay cash for (likely on a smaller home that is in not as nice an area)???

@Desteni Barnes Thanks for posting. I had a similar question about this because I was looking to use a LOC for my first deal. I couldn't decide if I should use the LOC on a cash offer for SFH rental (bearing in mind the property would likely be less than 50K) or use it as a down payment on a conventional loan for a more expensive property.

@Alaska Wagoner Those are some great points you brought up. I've been torn between how to save up enough cash reserves. I'm basically starting from scratch here. I mean I currently own my primary residence and as far as I know have quite a bit of equity in it, so a HELOC is a down payment option I guess. But I've also read from other posts, that you should try not to leverage your primary residence if at all possible because of the risk. But I've also read where people have done this using the BRRRR strategy and it worked for them. Then I had someone tell me that wholesaling may be the most conservative option for me being that I have a wife and 4 kids and can't really afford a lot of risk without sufficient cash saved up.

As far as my why, I too want to build passive income so that I can accelerate paying off debt and saving for retirement. I also want to diversify my portfolio to build a net worth large enough to become financially independent, allowing the option spend more time with my family. I am happy with my day job and plan to keep it. But I also want to get to the point where I'm not dependent on it as a primary income source.

As far as down payment, seller financing could definitely be an option, assuming a came across a really motivated seller. Again, just not sure whether I should start with something conservative and save up or just jump right on a deal and figure out how to come up with the money as I go without much saved up. Seems like the former would the wiser approach. Not in it to get-rich overnight but at the same time I don't want to get stuck in "analysis paralysis" and not take any action towards building my business. I like your approach to having a schedule of research and regularly meeting with other investors and keeping track of your educational process. Would you mind sharing what you've been researching? Do you have a mentor that your working with?

All the best,

Bryan

@James wachob

Bartlett

Cordova 

East Memphis 

Millington 

@Kiera Underwood

Okay gotcha, thanks for clarifying...Not likely an option for me at this point with a family of 6 (including myself) in our existing home.

@Kiera Underwood What is house hacking?

Hi All,

My name is Bryan and I am new to real estate investing in the Memphis, TN area. I have long wanted to pursue real estate and my wife and I recently decided to take the plunge. I'm looking to start off part time while still working a day job. I would like to focus on single or multi-family properties on a buy and hold strategy. However, down payment is an obstacle. I've been reading up on OPM strategies for those with little or no money available for down payment. Perhaps wholesale or flipping is an option in order to save for future purchases. If any of you saavy vets out there have advice for a newbie like me, I'd greatly appreciate it. Thanks in advance.

Best Regards,

Bryan