All Forum Posts by: Clayton Cissell

Thankyou for your response! Actually went today and talked with a loan officer friend of mine who does helocs, I can pull 80k for 700 a month with a 2500$ origination fee. This seems the simplest, but will it cause issues down the road when I goto cash out refinance on the same property once casita is built with heloc money? Seems like if I went with hard money I would be pay more in the interest only portion of getting the hard money… what am I missing here? 

I have a house with about 70-90k of equity that I’m looking to refinance out of the property. I’m currently living here with a roommate and have a 3.3% interest rate loan on 300k and still owe about 280k. My monthly payment is 1,314 and the roommate pays 1k. My plan is to take the detached garage and turn it to a casita to also rent out while still living in the main property to offset the increase in mortgage from the refinance. In my market the casita would rent for 1000-1400$ a month. My question is would it be best to build the casita prior to pulling the cash? If so what are the actionable steps I should be taking to get that ball rolling? Look for private money? Pull a heloc and build it out, refi after? What’s the best method here? 

This is my first rental property experience and I’m wondering if it’s a good idea to rent to somebody I know and trust to keep the property in good condition for less money but have the peace of mind and know that I will have a long term renter for the property or go through a property manager to get the place rented out for $300 more each month in rent but have a random person in the property and have to pay the property manager half of the first months rent to do the screening, paperwork, showings, ect.