All Forum Posts by: Account Closed

@Brent Coombs, thanks for the heads up. Good to know.

@Katy Reid, thanks for the update. Hope even if the process is "stricter" you get through it fine and are that much more ready for the next deal.

@Katy Reid and @Vinci S., I'd be curious to know how it went with getting permitted in Yucca Valley and Joshua Tree. Were you successful? Lessons learned? Are your rentals up and running?

I don't want to give advice necessarily because everyone's individual situation, goals, and personality are different. That said, some might say that equity is in a way useless, almost theoretical money, until you put it use or convert it. In other words, it's just sitting there. So, if there were an option to deploy equity into an investment which earns you money, an argument could be made that would be an approach to consider. If you are in a position where you can save that money as well, you would be in a position where you could see how the investment is going and then either pay the HELOC off more aggressively, or use the money you'd saved in the meantime to move on to another investment. Again, not advising, but offering some thoughts.

@Emmanuel Fregene, I hit post and realized I didn't answer your other question about how long you need to have a heloc before you can do a refi. I don't think that is necessarily the right question. Remember, a heloc is just a line of credit. If you used a heloc to purchase a property that you then wanted to refi, the question is instead, how long do you need to own the property before you can do a refi. If it is a rental, many banks would want to see at least 6 months if not 12+ months of rental history to do a refinance on an investment.

@Emmanuel Fregene, it took me a minute re-reading your questions to get at what I think you're asking: To summarize, you're thinking of using a heloc to purchase a property and then are wondering if you'd use the same bank to refi out of that heloc to a conventional loan. 

If that is your question, I think the answer depends. There is no harm in asking that bank that did the heloc what they may be able to do for a refi; however, they may not have the best refi loans or even necessarily be able to do your refi. For example, I just finished getting a new heloc from an institution (not in my state) I found with a very good product; however, I also asked about doing a refi on a duplex I own in another state and they are unable to lend on duplexes. Other institutions may only be doing refi loans within a certain region.

@Kyle Smith, Big Bear is in Southern California in the San Bernardino Mountains. The mountains are nowhere near as impressive as the Sierras, but the area has several ski resorts, enjoys great weather, and is an easy getaway for the L.A. and San Diego crowd. 

There are a few people on these forums that are active there, and from what I gather doing quite well.

@Ted Davis, I'm no expert and am just trying to get some things started in that area, but from my initial research and conversations: You definitely want to stay out of the city limits of Asheville if you are looking for a true STR situation for your family. Check out the link @Chris T. posted on the Homestay rules. If you're not going to be owner occupying the property, the regulations are pretty limiting. 

There are a number of areas that would be just outside city limits that you could look.

@Richard S Myers, maybe it would help to set goals that are lead measures, i.e. quantifiable or specific things you can be doing to move your your main goal forward. You could break down the things that will lead to successfully doing your goal (wholesaling) into key areas and then create the lead measures. 

For example, maybe you send a certain amount of direct mail, or spend a specific number of hours on SEO, or drive a certain number of neighborhoods. Then maybe you also network with a certain # of people and so on with other things you can create the lead measures for. If you keep pursuing the lead measures, maybe refining as you go, the can lead to results.

@David VanWert, that is good to know. I don't yet have the experience of running one to have actual #'s, so I appreciate your input that much more. I really want to get into the STR arena successfully to be able to replicate it in a few areas.