All Forum Posts by: Daniel Z Fang

Hi Alex - both are viable options. Cash out refi means locking in the rate and making payments now while a heloc has variable interest rate as revolving credit which you can draw on as needed. It depends on what you’re needing that money for. Personally I view heloc as a short term option given uncertainty with long term rates so I would only use in place of a short term loan. For a down payment in a buy and hold situation, cash out refi feels more predictable. I would suggest focusing first on the details of the deal. Once you know what you want to buy, you can look at both options to figure out how best to finance it.

It really depends on your HOA and what is covered vs what isn't. It's a good idea to read through the rules before purchasing so you aren't surprised and can budget accordingly

@Anthony Vangilder

Do your own due diligence. Most pro forma are inflated and underestimate cap ex, repairs, tenant turnover costs. It’s a great option for getting your feet wet w real estate investing but since you won’t be making your money when you buy, you’ll need to plan for a long term hold with adequate cash reserves.

@Guifre Mora

Thank you

@Jaysen Medhurst

Wholesaler needs a double close so cash, hml, or commercial are my options. I want to end up with a 30 year fixed.

If I buy a rental prop with hard money or a commercial loan and want to refi into a conventional loan, is there a waiting period involved or can this be done right away?

@Bruce C. This is correct and worth emphasizing that it’s only faster because you’ve rolled your extra cash flow from the paid off houses into the remaining debt. If you don’t do this it’s no different than 1k each.

@Chris Hill Yes, paying off one at a time is faster than 1k in each

@Chris Hill assuming all 3 have similar mortgages and interest rates, it will be faster to pay off one at a time if you use the freed up cash flow from each sequentially paid off property to pay off the others. If you don’t then it won’t make a difference one way or another

@Bjorn Ahlblad

Ah yes. Looks like it’s finally time. Thank you