All Forum Posts by: Cillian Kelly

I've used it for 2-4 years  

Find an investment that can justify using the HELOC. It's basically math. You can find a property that generates enough cashflow to cover your mortgage and pay for your HELOC interest. Anything residual should be used to pay down the HELOC.

@Joseph Mendez

Great news and congratulations on making the first step. Real estate investing is a great way to build passive income and generational wealth. 

I currently own 7 properties and looking to add another 2-3 in the next 2 years. Developing a dolid investment plan will save you a lot of headache. Do you want to generate passive income, so you can perhaps leave your full time job or work part time?  

 I have found  mobile app called Clarem (www.getclarem.com) useful to build a plan and stick to it. 

Do you want to generate passive income or are you okay with negative cash flow? Generally speaking the higher cashflowing properties appreciate less. 

With $350k you can purchase - 2 properties in cash or 4-5 with financing. I'd recommend checking out some turnkey property managers to get a sense of the numbers. 

You can also run the numbers with a mobile app called Clarem FI (www.getclarem.com) that can help you build the most optimal plan to deploy your cash. 
 

I have used HELOCS to 1. pay for a downpayment on a new investment property and 2. payoff another property to maximize my cashflow

Cash out refis are great in an up market or if you've owned the property for awhile. 

You can use both for short and long term purposes just remember to use snowball method and payoff your highest debts first //or refi when rates go down

@Shafi Noss @Chris Seveney

Hello, thank you for the responses. A little bit more context, I have a 6.5% interest mortgage that I have been prepaying overtime with extra cashflow from my rental. I've build enough equity and now looking to recast or lower my monthly payment to get more cashflow out for a new project. 

Refinancing right now doesn't make sense, if anything I will prob get similar rate and pay closing costs. 

What tool do you use to recast?

I've build a lot of equity in one of my properties and I am thinking about recasting to lower my monthly payment. 

Any advise is appreciated