All Forum Posts by: Devang Patel

Why did you choose the heloc over equity refi or cash out refi?

Understood, thank you. If banks do not lend to LLC's, then how is it even possible to put mortgaged homes under an LLC for protection?

I am a newbie real estate investor and in my first year have purchased, rehabbed, and established steady cash flow on 4 units.  I want to continue adding units and my ultimate goal is to get to 12.  However, I am running out of cash for the 20% down payments.  For my owner occupied home, I have 33% equity plus value of the home per zillow's zestimate (which i know is not entirely accurate) is 21%.  I am trying to decide on whether my best course of action is:

1.  Sell my home, take back equity plus gains to purchase more units while living with family for short period of time.  

2.  Cash out refinance

3.  Home equity line

I am looking to hear what people feel would be my best course of action based on the above described situation.  I appreciate all of the assistance in advance.  Thanks again!

I am a newbie real estate investor and in my first year have purchased, rehabbed, and established steady cash flow on 4 units.  I want to continue adding units and my ultimate goal is to get to 12.  However, I am running out of cash for the 20% down payments.  For my owner occupied home, I have 33% equity plus value of the home per zillow's zestimate (which i know is not entirely accurate) is 21%.  I am trying to decide on whether my best course of action is:

1.  Sell my home, take back equity plus gains to purchase more units while living with family for short period of time.  

2.  Cash out refinance

3.  Home equity line

I am looking to hear what people feel would be my best course of action based on the above described situation.  I appreciate all of the assistance in advance.  Thanks again!

I live in NJ and have four rental units. I want to protect myself from the risk of lawsuits against all of my personal assets. I have read that in order to protect your personal assets, you should place your real estate holdings into an LLC. This is confusing me a bit as I believe all mortgages these days have a "due on sale" clause as well as banks wanting the home to remain recourse to the borrower. Also, banks do not lend to LLC's directly. So how is it even possible to move your homes under an LLC for protection?

Thanks Charlie.  I see your point in diversification and have thought about the same thing.  However, it seems that this would stop me and slow me down on my current goal of retiring early.  I guess this ends up being a personal decision on risk and preference. However, my current employer does not match for 401k.  Any more thoughts on this?  

I am a newbie and within the past year have closed on 4 units that are cash flowing very well.  My ultimate goal is to retire at a very early age and live off of the cash flow of my properties.  My unit count goal for properties is in the 15-20 range for now.  I am 30 years old and since i graduated college at 22, I have always attempted to max my 401k and roth ira.  Since i plan on using my rental properties for my early retirement, i am having a tough time understanding why I should be investing in 401k and roth that is not accessible until a later age without penalties.  The additional cash would really help for down payments on new acquisitions.  I would love to hear fellow bloggers' opinions on this matter.

How about for self education if you want to self manage your properties as a landlord rather than contracting a property manager?  Is there any course work you can take?  IREM has some course work.  Has anyone ever used them?

To be considered a property manager, what are the general qualifications?  Do you have to become licensed?  

If one were to decline hiring a property manager, are there any property management courses a landlord could take to self manage successfully?  

thank you for the responses.  I am not looking to discriminate, but more trying to understand what i would have to provide that is different from a tenant with no disability.  Also trying to understand what sort of liability and risk I would have once they are my tenants that are different from a tenant with no disabilities.