All Forum Posts by: Charles Stubblebine

If you open up a HELOC from the equity on a SFH and then decide to sell the SFH a few years later what would be the monetary consequences if any? Does the HELOC prevent you from selling if you have a HELOC open on the SFH?

Thank you, 

Charlie 

Thank you Eric. Do you mind sharing the interest rate and how much it cost to get one started? I'm assuming they will charge me for an appraisal to determine the LTV ratio. How did they determine what your asset was forth? I am familiar with WSFS. My Dad opened up a checking account for me when I was 14 and got my first job at McDonalds. That is a great idea and I will definitely be calling them.

Charlie 

Who do you recommend to get a HELOC? I called USAA and they do not offer a HELOC at this time. The current lender on the SFH mortgage is Bank of America. I'm in Florida and the house is located in Delaware if that would matter.

Thank you,

Charlie    

@Roger Pokorny

Thank you Roger. Showing me that formula really edumicated me :)

Charlie

Thank you Edward. I conservatively estimate the house would appraise for $190,000 and I still owe $155,000. Is the appraisal did come in at $190,000 would I have enough of the loan payed off to get the HELOC?

Thank you,

Charlie

What do you have to pay upfront to get a HELOC? And is there a certain amount of the original mortgage that has to be paid off in order to qualify for a HELOC?

Thank you.

Charlie  

Greg S.,

You say to consider "the value of any equity you may have in the property as also needing to earn a return". I had not thought of that. Can you explain what you mean by that? 

Charlie

Greg S.

My property manager contract states they will go out quarterly and inspect. I don't know if they have ever done it but they do a great job with managing the property. When I went back home when I was on leave I did drive by the property and the outside looked great. It was well kept. The cashflow is positive. May be once a year the cashflow is negative do to some mainte repair but it is consistently positive. I recently read Rich Dad Poor Dad and I believe he said he does not keep a property longer than seven years. All I know is if my renters continue to pay down my mortgage which means more equity and cashflow for me. 

Charlie

Thank you Jerry W. That is some great advice. I agree with you that good renters have to outweigh an extra $50 or $100 dollars. Since I don't have any issues with these renters it makes sense to keep it going unchanged. I think I would raise it to $1500 with a new renter if they ever decide to move out. But I will check some of those sources. The challenge is I am in Florida and the property is in Delaware. 

Charlie 

Thank you Greg. It is a SFH and I am happy with the present income. I wonder though if I should ever sell it or just always keep it as a rental. My thinking is once the mortgage is totally paid off that would be some nice passive income. Is that considered passive income or is it considered earned income?

Thank you.

Charlie