All Forum Posts by: David Garcia

Hi @Justin Phillips, thats an interesting method to access the capital while reducing costs and earn some interest. Whats the typical yield you see on the sweep? Thanks for your comment! Do you recommend any lenders in the Denver Market to discuss this option with? Thanks!

Hi @Matt M. thanks for your feedback. Ya, something definitely to research before using the Heloc to buy a house. Would be a shame not being able to refinance and pay off the heloc balance. Appreciate your comment

Thanks for the reply @James Carlson! I really appreciate your perspective. Definitely agree with you on the downsides of going to a 30 Yr Mortgage. We've really only been in the home for 3 Years, (originally financed on a 30 Year in 2018, refi'd to a lower rate, 20 Years, no cash out in 2019) but would be a shame to go back to 30. 

If we sell, we can consider 1) Take a portion of the equity, Downsizing and buying a smaller house outside of Denver and house hack again 2) Rent a Place somewhere outside of Denver, and get approval from the Landlord to airbnb spare bedrooms (rental Arbitrage) essentially allowing us to reduce our rental Costs.

The Heloc seems like the cleanest way to access the equity and BRRRR some properties....only downsides I see with the Heloc is the higher interest and potential of banks not renewing if the market drops. (the latter probably being unlikely unless the FED's response to inflation is not handled correctly).

My wife and I are pretty mobile, and have been thinking about relocating to a better neighborhood with more young families anyways. I just see the opportunity turn this equity into cashflow, and hard to imagine the market is going to get any better than it is now. Thanks for your feedback!

Forgot to mentioned we'd qualify for the Tax Exemption on Capital Gains since its our primary residence and meet the 2 out of last 5 rule. (Bought in May 2018, still living in property)

Hi everyone, 

Facing the same question probably alot of us are asking ourselves.... do I Sell, Cash out Refi, or Heloc. My wife and I own a 4Bd 2 Bth Bi Level SFR in Lakewood Co, Owe 300K on Mortgage (3.25% fixed, 18 years left on mortgage, $2200 Mortgage/Insurance/Taxes Payment) and property is currently estimated around $600K based on Comps in the area. After Fees/Closing, probably could net $250,000. We currently House Hack and do Short Term Rentals in the lower half of the home, which brings in ~$2700 per month in Cash.

I would like to turn the equity into even higher cash flowing assets using the BRRRR Method in Cincinnti or Cleveland based on population trends, decent rent/price ratios and lower capital requirements to BRRRR.

Selling and Taking the $250K off the table would enable us to launch our BRRRR Business, but we would of course have to rent somewhere else in CO (Not a bad thing, my wife wants to live closer to Boulder) and we would lose the $2700 monthly cash flow from short term rental income. Recognizing that home appreciation is crazy high right now, rates will likely go up in the future due to inflation, I expect the apprecation to slow down in the next year or so (just my hunch).

Cash Out Re-Fing/Heloc is also a potential option to take out ~$180K and use to BRRRR. The only thing I don't like about the Refi, is i'd probalby have to go back to a 30 Year Mortgage. The Heloc could be the best option as we can still live in the house, continue to cash flow with the Short Term Rental.

Interested to hear your thoughts! Thanks and God Bless!