All Forum Posts by: Chris Hall

Todd, what percentage of your Heloc do you tap for this? If I BRRR'd I'd be tapping 90% of the Heloc Lines which would make my DTI fairly high before the refinance... hence my concerns.

Hey Jiri, thanks for the response and your insights into your strategy. what percentage of the Heloc's do you tap for your down payment? 20% or something like that? My concern is I'd be tapping 90% of each Heloc line which would make my DTI really high until I refinanced.

And how does your lender take into account your Heloc draws for your downpayment requirements? ie do you have to show them where the cash came from?

Hey everyone, I'm a fairly green buy and hold investor in Raleigh, NC with two deals done now (long term buy and holds, single family residences, very basic), and I'm looking to keep building my portfolio in the next year or two with another purchase. Having just done a VERY light rehab on my latest purchase, I want to do a full-on BRRRR for my next investment to really get the benefits of buying something outside of the MLS. As I'm planning for that, I'm looking into using a combination of HELOC's and Private Lending (loans from family members) to do the next deal (buy with cash, rehab, then refinance with a local lender). My question is:

1) If I get a combination of Helocs on my current properties and then use that money to pay cash for a BRRRR deal, it appears that my credit score would significantly drop due to the credit utilization ratio being so high (ie, I tap out the Helocs and I'm using almost all of my available credit, not good, this would obviously be a problem for the refinance in 6 months correct?)

2) What insights can people give me on this process as it appears that this may not be a viable rout for me if the majority of my funds would be coming from the heloc lines. (how in the world would a lender refinance my loan if my credit score drops from an 800 to a 600 due to the HELOC leverage)

3) Is a business line of credit or other lending option a better alternative to this problem, and can a small investor secure one of these just doing a BRRRR here and there every other year?

Any help from the community would be great on this, I'm just trying to plan accordingly in setting up these lines in the next few months, but I want to know where I'm heading and not waste time on fruitless efforts! The devil appears to be in the details here. Thanks in advance.

@Dawn Brenengen of Trailwood Realty is HIGHLY reccomended. Helped me find a rental for my mother and currently manages the property as well. She's also a moderator here.

great stuff Chris, thanks for sharing the math as well, big help for us newbies.

Chris, my apologies, just seeing this now. Thank you for replying, interesting stuff.

Chris the rehab really looks fantastic. Can I ask what the specific were on #of beds and baths, square footage, and the current rent you're getting?

Hello from Raleigh. Great place to be

does anyone know if there's any data out there on the average "rents" in wake county and how they've been affected. I'm new to the area (from Los Angeles), and our rents dropped by a full 25% during the housing crisis. Wondering how rents reacted here and how they compare now. (it seems like the recent recession really didn't hit wake as hard as it hit other parts of the country in terms of real estate values)

Hey everyone, new to the Bigger Pockets Community, new to the Raleigh area, and new to the real estate investing world as well (that's a lot of new's I know). I'm looking to talk with some local lenders about financing for a few small long term buy and hold properties that I'm considering purchasing, and would love to know if anyone has any recommendations for "investor friendly" lenders in the area.  Did a little digging in the forums and saw a few posts regarding this in the past but thought I'd try and get an updated discussion. Thanks in advance!