All Forum Posts by: Chad Belcher

Thanks Stephanie! and the Cash out is more what I'm leaning towards now looking at it with both option it would be around the same payment every month but the HELOC unless I payed extra on the principal I would never really be paying my balance down with Refinance I would be putting some towards the principal, with my local bank I can get 75% LTV and on a 7/1 ARM it would be around 3.625% interest Rate.

I recently bought my second rental property which was a foreclosure which I only payed 3,620 for and is around 1550 square foot which it did require a lot of work but I used some leverage, I have a HELOC on my first rental property which is paid for and I had use about 42,000 of my HELOC and around 25,000 out my own pocket to complete the house so all in I'm around 65,000 and the ARV on the home is around 100,000- 105,000 and the house will rent for about 1,150 a month taxes will be about 900/year and insurance around 1700/year. My question is should I do a straight cash out refinance and pay off my other HELOC and pay myself back around 20,000 and continue to use the first HELOC I have to buy another house and continue the cycle OR should I take out another HELOC on this house and still pay myself back around 20,000 and use the rent to pay for the monthly HELOC payment which would leave around 55,000 in credit I could use to buy another property my only thinking with the HELOC is that if I use that then the as I pay it down that money becomes available to me again and with the refinance yes I will get cash but as I pay it off that money will never be available to me again. I know with either option I would still be getting some pretty good cash flow. I might be looking at this all wrong and i know your probably thinking SELL,SELL,SELL but I would like to keep it for a few years or possible longer being that I anticipate the home values to go up due to a lot of new jobs being created in the area.

The reason why I was considering another HELOC is because as I pay it down that credit would become available again for me to use again to reinvest in something else. A little more detail the HELOC I currently have is around 44,000 and I will use about 15,000 of my own money to complete the house renovation on the second property. So in completion I would be able to get a HELOC for 75,000 and I would be able to pay down that 44,000 fairly quickly with the first rental property's income and the second. I may just be looking at how I could utilize the second HELOC vs Refinance the wrong way.

Here's my situation I have rental property that is clear and payed for and I took out a HELOC on it and I bought a house that is a foreclosure with the HELOC and I am currently fixing it up and I should at about 45,000 completed and a ARV of about 105,000. I would like to keep the house for the long term. I'm looking at about 1050.00 a month for rent. So the question is should I do a cash out refinance on it or do a HELOC and just pay back my other one with the rent I know that Wells Fargo HELOC has the fixed rate terms for a portion of the HELOC for 10 or 20 years. But with Either strategy I would have 30-40K more money to work with in the future. I should be able to get about 70k with either of the above

I'm a new member on Bigger Pockets. I currently have a single family rental property that is paid off and worth about 70k I would like to open up a HELOC on it and use it for a down payment on a another 4 unit apartment. I would assume that once I do get the HELOC (which I have talked to the bank and I can get) I would have to draw the down payment and park it in my bank account for a couple months so it will show up on my statements. My main question is what is the exit strategy for getting out of the HELOC down payment and continuing to use it on to the next investment property. On this property I should be clearing around 1000 a month from this 4 unit apartment.