All Forum Posts by: David Arehart

Hello everyone, Im trying to get the ball rolling on investing in RE, so over the last few days I have been calling local credit unions and banks to compare Heloc rates and terms. Ive contacted roughly 10 or so and have narrowed it down to 3. I think I know which one to go with but I wanted to check with some experienced creative investors first. Which one do you think is the best option for funding the downpayment on a SFH rental? Im looking to get 90% LTV on my primary residence for this Heloc, depending on appraisal I think I can get a line for 50k.

Option 1:

--- Promotion: 6 months @ 2.49% Variable Rate --- Floor Rate: 5% (With Great credit) --- Ceiling Rate: 15% --- No Annual Fee

--- No prepayment Fee --- Appraisal $400 + $100 Processing Fees --- After 6 months variable rate can be locked in. Two rates can be locked at one time, only four rates locked in for entire life of line. No Max rate rise/fall per year.

Option 2:

--- Promotion: .99% Fixed for 12 months --- Floor Rate: 5.5% --- Ceiling Rate: 18% --- No Annual Fees --- No prepayment Fee

--- Appraisal $310-490 + $150 Processing Fee --- Rate turns Variable after 12 months. Can't lock rates. No max rate rise/fall per year.

Option 3:

--- Promotion: 3.99% Fixed for 60 months --- Floor rate: 4.25% --- Ceiling Rate: 18% --- No Annual Fees --- No Prepayment fees

--- Appraisal $425 + $400 Processing Fee --- Rate turns Variable after the 60 month promo period. Cant lock rate. No max rate rise/Fall per year.

Any advice or input would be greatly appreciated, thanks in advance!

David Arehart

Hello everyone, Im trying to get the ball rolling on investing in RE, so over the last few days I have been calling local credit unions and banks to compare Heloc rates and terms. Ive contacted roughly 10 or so and have narrowed it down to 3. I think I know which one to go with but I wanted to check with some experienced creative investors first. Which one do you think is the best option for funding the downpayment on a SFH rental? Im looking to get 90% LTV on my primary residence for this Heloc, depending on appraisal I think I can get a line for 50k.

Option 1:

--- Promotion: 6 months @ 2.49% Variable Rate --- Floor Rate: 5% (With Great credit) --- Ceiling Rate: 15% --- No Annual Fee 

--- No prepayment Fee --- Appraisal $400 + $100 Processing Fees --- After 6 months variable rate can be locked in. Two rates can be locked at one time, only four rates locked in for entire life of line. No Max rate rise/fall per year. 

Option 2:

--- Promotion: .99% Fixed for 12 months --- Floor Rate: 5.5% --- Ceiling Rate: 18% --- No Annual Fees --- No prepayment Fee 

--- Appraisal $310-490 + $150 Processing Fee --- Rate turns Variable after 12 months. Can't lock rates. No max rate rise/fall per year. 

Option 3:

--- Promotion: 3.99% Fixed for 60 months --- Floor rate: 4.25% --- Ceiling Rate: 18% --- No Annual Fees --- No Prepayment fees

--- Appraisal $425 + $400 Processing Fee --- Rate turns Variable after the 60 month promo period. Cant lock rate. No max rate rise/Fall per year.

Any advice or input would be greatly appreciated, thanks in advance!

Perfect, makes sense to me. Thank you! 

Its the life safety issue, theres no emergency egress window out of the bedroom. The only exit out of the room is into the kitchen area. Theres another bedroom in the basement as well but no pictures of that room. I haven't seen the property in person. 

Ok, that's what I was wondering. The listing is for a SFH but it appears there's two separate tenants, with the basement tenant having the illegal bedroom. So it's not like a family living there with a teen in the illegal bedroom? What options would I have when taking over the lease agreement in this case? Like I said pictures only show 3 bedrooms and I haven't walked the property. The listing details give measurements for 4 bedrooms so I'm not sure if there is another illegal bedroom or not.

@Russell Brazil So is the non legal bedroom a concern for landlords regarding liability reasons? In short is this an issue that turns investors away from a deal?

Hello BP members! I have a few questions about a deal I may have found on the MLS. I'm still new and this would be my first rental property purchase. First, what steps should I take when buying a property with tenants already living there and willing to stay? Do I require the tenants to submit a new application after purchase? New lease agreement? Anything else I'm not thinking about? Second question is, is there any legal or insurance issues for landlords renting out spaces with nonconforming bedrooms? I will be reviewing my states landlord laws before even offering on this property of course. The listing is quite confusing, its listed as a 2 bed 2 BA SFH. The description mentions having tenants willing to stay. In the pics there's 2 beds and 1 bath upstairs plus living room and kitchen.(unit 1) Below grade there's pics of a kitchen, 1 bed and 1 Bath,(unit 2) bedroom has no windows. Looks like it has a separate entrance and windows in kitchen. Property features section says there's 2 bed and 1 Bath on each floor. Very confusing. I have a list of questions already for the sellers agent but would like to know what questions I should/can ask legally about the current tenants. (current rental rate, pets, jobs, etc.) Any advice would be greatly appreciated! Thanks in advance!

@Lamont Chen Thanks! I appreciate the answer!

Hello BP members! I'm still a newbie and don't have any properties under my belt, YET. But, I think I may have found a good deal for turning a 4 Bed 3 Bath SFH into a 2Bed 2Bath duplex. Ive ran the numbers and it seems to be a good deal based on BP insights for rental income. (I will do further diligence beyond that of course) My question is, while analyzing the deal on the calculators, how do I determine the ARV on a duplex? Do you use comps of area duplexes? Any help would be greatly appreciated! Thanks!

Thank you! Thats a good idea @Jennifer Z. Im on Zillow nightly so that would be an easy addition to my nightly routine. Appreciate the advice!