All Forum Posts by: Craig Jeppesen

Whoever files first is in first position. A refinance requires a subordination agreement to move the new loan to first position which means they get paid first in case of foreclosure.

It looks like you are about 94 ltv so you don’t have enough equity to get a heloc. You typically need to be less than 80% ltv. If you had a house worth $100 k and you owed $60k, you could get a heloc for $20 k. A heloc is a line of credit which works a credit card where you have access to it when you want and only pay interest when you advance on it. A home equity loan is an installment loan like a car loan where you get the funds upfront and have a monthly payment until it is paid off.

Your rentals should have more income than expense so should help out with your dti ratio. Are they forgetting to back off depreciation expense from your taxes or do you have other consumer debts that are giving you a high dti? I don’t think you have a high dti from your rentals unless you haven’t had them long enough to count the income or they don’t cash flow.

The short answer is yes, but it also depends on if you can itemize or not. Heloc interest is still deductible if used for home improvements and investing , but if your itemized deductions are less than the standard deduction then it won’t help.

I always over budget and would not have a $20 unexpected expense, maybe a couple grand. I also do a lot of the work myself and only invest locally.

These are the flips I like to do, a quick remodel over a few months with few big issues and low stress, an easy $25k profit. I am working on one right now. I have never used a hm lender and don’t know if you have enough capital to do 2 projects at the same time, but if you do go for it.

It is easier to get a personal mortgage for a house you will live in. The down payment requirement is significantly lower and most flips are hard to finance with traditional loans. You might try buying a duplex or fourplex and live in one of the units for your first investments.

I would keep looking. Cash flow/ reserves are important especially when starting out. Be patient or see if he will lower price and or interest rate until it cash flows. If not pass on it. Deals will pop up.

keep learning. Read lots of real estate and personal finance books, save up money and don’t get into consumer debt. You might be able to apartment hack at school if the school allows it, get an apartment and sublease to your roommates to try and live for cheap or free. Start watching the market where you will invest in and also network with other investors in that area. Work for an investor or contractor part time while in school.

These should work if they are the right size. I searches for faux drawer clips.

https://www.amazon.com/False-Connector-opening-complete-including/dp/B076MC2L9F/ref=sr_1_1?ie=UTF8&qid=1547527619&sr=8-1&keywords=Faux+drawer+clips