All Forum Posts by: Devin Peterson

Hey BP! I own an investment condo here in Orlando, FL under my personal name and I'm looking to get a HELOC to access that equity to invest in my real estate business. It's owned free and clear. My current income is only from my real estate business and I opened my LLC back in August 2021 so it's around 1.5 years old. I had a W-2 income coming in for many years but I quit in May 2022.

What would be my options to possibly get a HELOC on my investment property?

Hi there,

We've got one investment property now (seller financing) and we're looking to expand, so exploring what we can qualify for with a conventional loan.

For the existing property, we put quite a bit of money into it to fix it up 2 years ago, so on paper, we're still operating at a "loss" on our taxes as we continue to offset our earnings with our previous expenses. I know this is what makes real estate such an attractive investment, because it's so easy to offset your tax burden by reinvesting in the property itself! We are actually netting $30k a year on the property though, so it's a solid little money maker for us, and we'd like to use that cash toward future investments.

But now the rub - our mortgage guy says the banks will look at our tax docs to see what to count as income, and the mortgage on our investment property will look like a liability since we're declaring loses on it, at least for the next year or two. So how do folks get around this? It seems weird to me that money we spent 2+ years ago makes us look like we have less income than we really do to buy more property today, since we are cash flowing. Do we really have to wait until we start showing a profit on our taxes to be able to use this income toward our purchasing power? Or do we have to talk to a different kind of mortgage broker? 

I want to look poor to the IRS but rich to the banks! :P

I currently have an investment property in Doral Florida and i have a first conventional mortgage and second is heloc arm interest only. I want to find an investor who is willing to pay off the heloc and work out terms where some goes towards principal? any thoughts?

So I need a cash out refinance on a investment property on a home

Hello all and Happy Holidays,  

I am a brand new investor and I am trying to secure my first property and I want it to be a Multifamily. I don't have much capital (none to be transparent). I am looking into a private lender to help find this. The property I am looking will need a decent amount of rehab, but the return / cash on cash return is EXCELLENT ! I am very uneducated on how a lender like this. I live in Tampa, FL but looking at properties in Ohio. If anyone could help with any info on how to find lenders like these it would be amazing. Furthermore, If I were able to possibly get a lender like this, would it have to be based out of the state that I am buying or would one in FL work ? Thanks for any advice / help ! 

My husband and I are wrapping up over a year long live in flip at our lake house that we plan to make a STR in the spring. We are under contract to sell our LTR and want to replace it with a second STR. Because we lived in that property over 2 of the last 5 years we don't have to worry about 1031.

We planned on purchasing a property with a DCSR loan but our realtor strongly advised that we do an FHA loan instead. We told him that we do *not* plan on living in this property and we plan on buying another (our dream home) sometime in the spring. He has more than insisted because of low down payment and interest rate, comparatively. We've never heard of using an FHA for a property that's not your primary residence and don't know if this is possible and what the consequences would be. We want to invest the right way but more importantly, we don't want to jeopardize our financing for our primary residence here in a few months. He suggested using a conventional loan in the spring for our primary residence. Our realtor is also on board with this and stating that this happens all the time.

We are on a journey to build our wealth and getting very close to financial freedom but we want to do it the right way. Any thoughts or advice would be so helpful. Thank you!

I am curious, have you used an interest-only mortgage product for a deal? If so, why?