All Forum Posts by: Charlie Nghiem

@Mike Hanneman Yes, it would be a cash flow property with a HML lender. Right now just need to close on it. Might be making things complicated too soon.

Amortization applies to any loan that you pay back with regular monthly payments, so I am using the word wrong when I say no amortization. If I have a $100,000 mortgage at 5% interest on a 30 year note, I would expect to pay $600 /mo. With a conventional mortgage you spend more money paying off the interest and barely touching the principle. With a $100,000 heloc at 5% and $600 /mo I would pay it off in 23 years and save about $20,000 in interest. With the heloc I would bring down the principle faster, effectively lowing my interest payments, especially if I use the extra cash flow from the property and put it toward the loan. I can do the same thing with the mortgage, but still would be more effective under a heloc. 

I believe I explained it correctly. I only have read this and taken a look at the numbers. But I am excited to use this method to pay off the properties quickly.

@Mike Hanneman I was trying to see if I could eliminate a couple of steps to save money and time. I have to use the HML to aquire property quickly, but wanted the property under a HELOC 1st position lien, which would let me pay off the property faster since their is no amortization. I just wanted to go from HML to HELOC without refinancing to a conventional mortgage inbetween.

But i figured the only way around this is literally to pay cash, which means that I have to get a personal loan or borrow money. This is correct, yes?

@Account Closed Just pay cash would solve a lot of my problems. But I assume that is the only answer. I am in the middle of a refinance and it is taking a while so I don't have any cash to use. Thanks for your input.

There is a property that the owner owes 133K, and wants 191K. ARV is 238K. I want to get this house under a 1st lien HELOC. I wanted to use hard money to get the property quickly, and then get the HELOC to secure the house, but then the hard money lender would be first lien, correct? Then that would mean I would have to get a mortgage in my name to transfer the deed to me, then transfer to a 1st lien HELOC. Is there an easier way to get from point A to B?

@George P. You must have experience if everything else is a moderate rehab. I am estimating largely for the unknown, because I'm really not sure with a job this size. A partner would be great.

I've been searching and this house actually popped up on Craigslist. Has anyone with experience think it is worth it? I see the potential in this house. It was built in the 70's and still has some of the historic notes of the era, mainly the intercom system. The floor plan is outdated, but the view you get of the greenbelt in the back is amazing. With bringing everything down to the studs and replacing insulation, drywall, wiring, and such the floorplan can be updated to a more modern style. 

The fire started at the deck and moved into the house from there. Id say that 20% of the structure needs to be replaced. Rest of the house is smoke and water damage. 

The swimming pool in the rear still works fine, but the construction is questionable to me. Although I have no idea what a proper pool install is suppose to look like. 

Thinking this might be out of my wheelhouse as far as first deals, but it looks like an amazing flip if I can finance the deal. 

Quick Specs: Built in 1968, 6 beds, 5 baths, 1 story in the front, halfway through the house there is a couple of rooms under ( I wouldn't consider it a basement).

ARV: 1,300,000

REPAIRS/RENOVATIONS: 350,000

HOLDING COSTS 6MO: 54,000

PURCHASE PRICE: 500,000

Do the numbers look good? Is $350,000 enough to rebuild a house of this size? What do you think?

All photos of property

Thanks for your input guys. Will take it into consideration. 

I have a property that is an hour away and is selling $28K under tax assessed value. I believe it was built in 1970, I am going to assume it needs a lot of repairs. The owner says he received the property through his dad's estate but the attorneys didn't follow up on the purchase agreement with the other heirs and now one of the heirs has requested the courts to sell the property. He/she wants to see the property quickly to avoid the commission by a realtor. 

I am not too familiar with what I can do. Can I purchase this directly from one person or do I have to consult the attorney?

@Jeff Fruhwirth

By house hacking, you mean multifamily units, correct? 

I could probably list out skills that I have, except they pertain mostly to repairing the body on cars. I work hard, I organize my work flow to move as efficiently as possible, I estimate repair times and price, and throw the less technical tasks to my apprentice. My job is to get things done. Its stressful, its hectic, and for some reason that is enjoyable. The only part that I done enjoy now a days, is the harsh working environment, and the physical labor. I feel like flipping is just more suited to me. 

I just might have to look in surrounding areas like Kyle, which seems to be developing, Elgin, Burnet. I'm just not sure where I should focus my attention at this time.

I would of house hacked if I would of found out about this website when I was in my early 20's and single (and smart enough). I just can't see it as an option right now with my wife and 2 kids, no matter how bad I want it.