All Forum Posts by: Dave Smith

I am analyzing a deal with the opposite. The CoC return is strong, but the cash flow is weak because it's a 1/1, where comp rents will only allow for approx. $500/mo ARV. I am using a HELOC, and the cost of the money reduces cash flow as well. I am also concerned with an ARV of $31,000, I won't be able to get a refi to pull out my cash, because of the low loan amount. Am I missing something?

@Michael Pearce

Thank you, Michael! That is helpful. Good to hear from you: we met at the meetup. Your answer tells me that I will hit my DTI rather soon, with my existing mortgage, and the HELOC I'm waiting for approval on. Without seasoning, it seems it well be difficult to get the property refinanced. Any recommendations on small, local banks?

Thank you.

Kevin K, any successes under your belt yet, using a HELOC to start out with??

So I'm wondering if folks are able to get a refi to get their cash back out. Are the banks looking at an investor with a primary mortgage, plus a HELOC, now asking for an additional loan?

If my cash is locked up, not as easy to get my next deal.  Anyone share their experience on this?  Thank you.

Kendall, how are you getting along on your journey?  I'm a beginning investor in St Joe, and looking to build my network.

The last entry was a year ago, but thought I'd check in.  I work in St Joe, and am a beginning real estate investor.  Do you guys meetup anywhere?  Looking to build my network.

Hi folks,

I work in St Joe, and am a beginning investor.  Do you guys have any meetups going on?  I am looking at my first deal in St Joe now, and wanting to build network.  I do work long hours, but will take time out to get together.  

If anyone who started out using a HELOC that has done multiple deals and leveraged up could share their experience and knowledge, that would be fantastic. Thank you.

Terry, thank you.

My strategy is to hold and rent. ARV is approx 30K for this area. I did include taxes and insurance in my analysis.

I think my biggest concern is getting it refinanced. Not sure how tough it is, given I'll have the HELOC and my primary mortgage. It's my first deal, and I'm still trying to figure out the mechanics of it all. I don't know if my DTI at that point will prevent me from getting the refi. I want to be able to leverage so I can repeat the process.

Daniel, yes on the payback. No on the interest deduction, when used for investing. The way I understand the new tax law is that HELOC interest is only deductible when used to build on to, or make repairs to one's primary or secondary residence.