All Forum Posts by: Dawn Curry

Hey BPers..

I constantly have random questions/different scenarios popping up in my head and I wanted to hear from you all..

Have any of you ever used a construction loan to purchase a property to fix up to rent? In other words, if HELOCs, hard money lenders, etc were out of the picture.. have you used a construction loan to fix up (to bring up to code/become livable) for a future rental property?

Ps... Does anyone know how to edit the title to this post? I didn't mean to put "commercial"

@Patrick Rowe You can't use a HELOC?

@Patrick Rowe yes.. I just posted a thread about that a couple days ago and most lenders (well around me at least) all require 20% down for an investment property. I also had a local bank offer me a 15yr fixed rate or a 30yr adjustable rate. I obviously am going to go with the lender who is offering 30yr fixed. 

Definitely shop around.. I just got hooked up with a lender and they are giving me 30yr fixed rate at 4.25%

Loving all this feedback.. I totally agree Edward B. With taking as much HELOC out as possible as long as it's a quick turnaround. But as for buy and holds.. I don't think that's ideal. I came into this and said I will never pull my primary residence into any of my RE investing just for that fact... They could put it up for foreclosure in no time. I'm not about that.

What are you looking to get out of it? Quick cash or a buy and hold? Are these properties around you more likely to be bought by someone or are people more looking to rent?

awesome! Thanks for your insight and advice.. Definitely appreciated 

@Edward B. so what you're telling me is that you keep some capital lying around for the next deal then tying up all your funds and using a HELOC FOR YOUR NEXT INVESTMENT?

Awesome. Thanks Ronny Crawford ! Yea I figured it all comes down to personal preference, but I was seeing what others typically do in those types of situations --- if one scenario would be more financially sound/profitable than the other. Thank you for the feedback!

So let me get this straight... Hypothetically speaking you own Investment Property #1 that has $70k of equity in it. Obviously you are always looking for your next investment (#2). So with that being said, you can use that $70k from #1 as a down payment for #2? What are you BPers thoughts? Would you just use that equity for say the 20% down payment (for #2) to keep enough equity in #1 just in case when #3 comes into the picture you have enough equity to put your down payment on that to secure that as well?? I guess either way you put it.. There will always be enough equity for more properties, but I guess my question is: would you use all of your equity in your first investment? Or would you just subsequently use your equity in the next investment and keep using your equities from your last purchase? I hope this makes sense!