All Forum Posts by: Chris LumLee

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Hi,

I've read that I can get a HELOC on a rental property but I can't find a lender at this point who would do it. Does anyone have any recommendations? Also, do I have to get a HELOC from a lender in the same state that the property is in? Thank you!

I have CrestCore. Honestly, no complaints! I've only been with them for a few months so far but so far anytime I've had a question or a concern I'll just send them an email and they're quick with a response.

Hi,

1. Did you buy a SFR or a multi-unit for your first property? I bought a SFR.

2. What type of loan did you use? What was your downpayment? My situation was a little different. Because the price was kinda low and I wanted to make a quick deal I paid over half in cash. The price was low enough that I could. And because of that, I had to take out a secured loan and small personal loan for the balance of payment.

3. What was your initial cash flow after all expenses? (not including tax benefits/equity/loan pay down). Right now my net of expenses including loan payments are at about 75%. Take out loan payment, down to about 61%. The rest goes into CapEx savings and saving for taxes.

4. Did you have any land-lording experience or did you hire management right away? (will budget for it regardless, just curious). No land-lording experience. There was a property manager already in place so I just stuck with them.

@Matt A. The price is a little low so lender may not lend in that amount. 

Hi BP Community,

I come with another question- though I caution this will probably sound stupid.

I have a personal line of credit and I'm looking at buying another property. I only have a couple thousand dollars in cash because I spent most of it for a down payment on my second property.

So the question is ... "if you have a personal line of credit and have enough available to outright purchase a property, would you? Why or why not?"

I know the answers could be full of "it depends" so I'm trying to keep the question open-ended.

Thank you!

Welcome!

My response will be very simplistic so hopefully someone following will get into more detail or give examples. Turnkey providers either also have a property management company as well or they may not. IF the turnkey provider also has a PM company, then the residual income in management fees is one revenue source.
One thing I have found from some turnkey providers (I don't say all because I haven't talked to all obviously) is that they buy properties for what could be pennies on the dollar, pour money into rehabbing, and then sell at a premium...so they're fix-and-flippers. This isn't to say that they don't also hold some properties to keep some cash coming in...maybe they do or they don't.
Hope this brief comment gives SOME insight. 

I have one in Wayne County (Detroit). So far so good =)