All Forum Posts by: Colton Pierce

@Becca Summers yeah it's definitely a hot market to say the least lol - I know the appreciation is going to be there so maybe Jim is right about doing the Flips first to grow the cash funds first… otherwise though are you maybe talking about a rent by the room strategy instead to produce the cash flow a couple years from now or are you betting on the rents to catch up? I haven't been able to get my numbers to make sense for any SFR that I would purchase as a primary first.

@Jim Thorpe That’s not a bad idea actually, definitely not my area of expertise so I will have to get some books on it and do some more research on BP. Any suggestions when getting started down that path?

@Collette Petersen thanks for replying! We are definitely willing to make some sacrifices to get into something that is going to benefit our finances long term, we do have a dog right now and plan to have a couple of kids in the next 2 years, so that is something that we would want to make sure that we have room for. 

@Becca Summers thanks for the suggestion, I will have to mess with that tool! Do you have a few areas that would work in Utah (Preferred) or SLC County? That was our original plan of turning our current home into a rental since we have such a low payment compared to the rent we would receive, the issue is then moving into the next place that will also cash flow after a couple years when we decide to try and recycle the HELOC. Which just looking on the MLS has not been very fruitful lol.

@Joshua Janus - Yes that is an option that I am investigating right now since I would prefer to diversify and find the best use for the 100K while also paying it down with the cash flow.

Hi! I am looking for some advice on how I can maximize my $100,000 HELOC with Real Estate Investing.

Here are some of the specifics of my situation:

Currently residing and working in Salt Lake/ Utah County. Which I would like to stay in or around this area as it’s close to family and my employment.

Current mortgage on Primary (nothing drawn on HELOC): $1,400

2.99% initial Rate on the HELOC with no Initial Draw amount. 15 year draw period with a 25 year repay.

My dilemma is I would like to get into a home with the low down payment options to live in for a year and then repeat the process. This would also allow me to obtain more rentals in the next few years using the same amount of cash versus putting 20% down for a Investment property. However, in the SLC market it is nearly impossible to meet the 1% rule/find a cash flowing rental to pay back whatever I end up taking from the HELOC as a down payment/Closing Costs. So essentially I am stuck either investing out of the state (20% down) OR gambling with rent increasing (possibly negative cash flow for a bit).

Since this is my first property, I need to make sure that I am making the right move to snowball my investing. Any sage advice is great and a plus if it’s in SLC or a market where you are currently invested. 

Thanks in advance!

@Ryan Mertens

Hey Ryan! Thanks for the reply, I just did a standard % based off of what Brandon Turner suggests in his deal analysis videos, What do you typically take out for these expenses?

@Martin Carstens

Thanks for getting back to me! This was a quote I got for a Loan from a Loan Officer, it is a First Time Home buyer. I actually passed on this deal because they wouldn't take the offer that I sent to them with the numbers above. I tried to negotiate but they weren't willing to budge on the price they wanted. I am now looking into Large single family for a rent by the room House hacking strategy. Just waiting for a Offer to get accepted at this point :) 

Hello BP forums!

Please let me know if I am getting the numbers  correct, any advice would be awesome! :)

Thank you!

@Brandon L. Thank you so much for all of the good info and links! I’m currently in the process of finding a good real estate agent that will help me find my first deal so your post about how to find a good agent really helps. Currently I’m just Sifting through 20 deals a day that a couple agents send me. I also liked the post you made about educating yourself before you start asking questions on BP. I was raised on the “give a man a fish, feed him for a day. Teach a man to fish, feed him for a lifetime” mentality so to me that made a lot of sense. I agree wIth what you saId on that spreadIng yourself to thIn between all the dIfferent ways to make money In real estate wiIl just make you confused. Currently Im just focusing on the Buy/hold strategy and how I can accomplish it in my area. Might end up going for a live in flip but we will see where life takes me on that one. Anyway I really appreciate all of the great info! Stay awesome Brandon!

Hey Jaiden! 

Nice to see another real estate investor from SLC! Thanks for the advice, I will definitely start going to these meetups. I'll see you there!