All Forum Posts by: Darien Miller-Gowan

Hi Everyone, I am looking for and have already asked several contractors for a quote on converting my two car garage into a bedroom and TV room. This is an extremely simple rehab (Drywall, Insulation, Carpet, Minor Electrical, Couple Doors, etc.) and I have already personally quoted out the total materials cost. Does anyone know any contractors I can contact that will be sure to provide a reliable quote in a timely manner? Thanks again. 

Hey Tyler, I have been able to get 7.75% for a HELOC but in all honesty as long as you shop around at several lenders I think that is all the necessary due diligence needed on this front. In general, don't worry about the interest rate at it's current state but what is actually more important is if the utilization of this HELOC makes sense in terms of growing your portfolio, doesn't create to much risk that you are not willing to bare, and the numbers work then always do it is how I see it! People get caught up to much in interest rates -- if that stops you from purchasing another property where the numbers work then you could miss out on future equity. 

Hey Tyrel, if I am understanding the question correctly if you use your line of credit to purchase another property you will have two separate loans. One is the line of credit (20 years -- Most I have seen for this is 25 years) that I assume will be used as the down payment for the new house and the 2nd loan can/will be a 30 year fixed mortgage if that is what you are looking for. Keep in mind, for a conventional loan they will add the monthly costs of your line of credit to your debt to income ratio so make sure that doesn't stop you from qualifying. I did a similar thing where I do a loan against the value of my stock so I had two monthly payments due upon closing -- make sure you factor on those costs to determine if a deal is a good deal! Hope that helps.