All Forum Posts by: Daniel Mendez

Good morning BP,

One of the things I have learned about real estate is to always make sure to calculate whether or not the property that you will be investing in will be profitable in the long run.

However, I am still confused about something.

When I calculate the mortgage, do I estimate the mortgage payment based on the ARV of the property?

For example, I purchase a property for $80,000 and I estimate the mortgage to be $800. I also find out that properties for that size rent for $1,100. However, the ARV of the home is now, hypothetically speaking, $140,000 and I refinance it and now my mortgage comes out to $1,200. Now I am -$100 in the hole.

Am I correct?

Any guidance would greatly be appreciated. 

Hey BP,

I am embarrassed to say this but I still can't grasp how the whole refinance step works within the BRRRR method.

So from my understanding is say I purchase a single family home for $100,000. My mortgage will be $1,000 after down payment and stuff. After rehabbing, hypothetically speaking, it's ARV is $200,000.

So when I refinance the house at the new amount of say $200,000 my mortgage will go up but I will still get the $100,000 difference right?

I am very confused. Any help would be greatly appreciated

Good afternoon BP,

How do I go about classifying a neighborhood? Is there a website that might tell me what type of class the neighborhood the duplex I am trying to buy is in?

Any assistance would be greatly appreciated!

Good afternoon BP,

So I am trying to purchase my first investment property this year!

Unfortunately, I don’t have the cash needed to put down for an investment property.

However, I have acquired massive equity in my current primary home.

People talk about using a HELOC to invest in your second property.

My questions to you are the following:

1) How does a HELOC work?

2) Once I take the money when do I have to pay it back?

3) Does the HELOC get added to my current loan? Or does it become a new loan?

4) what are some way to pay off that HELOC loan right away?

I apologize if this is a dumb question but I can't seem to grasp how I can take advantage of the HELOC for my home.

@Ned Carey honestly I am just curious how much my home has appreciated since purchasing it almost 3 years ago. I am thinking of getting a HELOC out to use it for investment on another property

Hey BP!

How do I go about finding out how much my current house appraises for?

I know I can look at Zillow or Realtor.com but I hear they don’t really provide accurate results.

Any guidance would be greatly appreciated.

Good morning BP!

I am looking to buy my second property this year. I would use it as a primary and rent the house I live in right now. My landscape needs a bit of work. Does anyone know how I can determine how much the value of my house will go up if I give it the curb appeal that it needs?