All Forum Posts by: Doug Bielecki

Hi all, getting ready to list our breakeven rental in Oakland, CA, in search for something to BRRRR with cash flow either local or out of state. Sourcing an listing agent to help get the unit ready and wanted to see what's normal vs not from the BP community.

Have a relationship with a listing agent but they're unwilling to budge on the 3% fee on their end. Also expecting us to pay for staging the house.  Is this cost expected to come from the seller directly, or considered part of marketing materials and paid for via their 3% rate?

Was targeting being all in on commissions for 5% (2.5% each side). What risks come with paying selling side 3% while buyer side is only 2%? 

Feedback welcome, thanks for insight.

@Doug Bielecki

Anyone out there??

Hey oh, did some searching to no avail. Could use some BP insight!

Current situation: Looking to pay down some debts in-order to secure a high valued Fannie Mae refi today @ $765.6K, their max. Live in Bay Area, CA in a home valued at ~$1.1M and have already been pre-approved.

The product: Once I secure the refi, I'd like to immediately take out a HELOC on the property. Pen Fed's HELOC allows up to 50% DTI for up to 90% CLTV.

The issue: We put our "Old" house on the market as a rental this year, and have a 12 month agreement that went into place end of February 2020. We're collecting $4,250 in rent and expect to be per the agreement.We dont have 2 years of W2 on the property proving out stability/tenure, so how will the income from this be considered? What have you other investors seen done here for this?

The feedback: I've spoken to the loan agents from Pen Fed (only them at this point) and have received answers ranging from, "well, you'll just have to go through the underwriter process to find out", or from another of their agents, " our loans are more strict than Fannie Mae so no guarantees".  

I'd like to have some line of sight on this before we kick of the process hence my reach out. What are you guys seeing done here? Sounds like whether I'm at 45% DTI or 50%, 80% or 90% CLTV does not matter.

Would love some perspective from those that have dealt with this in today's environment.  Thanks all!

Are you seeing the 75% of rental income because less than 2 years of W2 proof for the rentals? We put our rental under contract in February 2020 and looking to secure a HELOC now assuming the rental income from the rental (or at least 75% of) will be considered. Anyone insight?

@Allan Smith

For this price I wouldn’t bat an eye. In California, it’s like $350/month for higher priced prop.

@Laurie Horning

How did the house appraise at more than the purchase price? The seller left money on the table?

At Joe, I guess I'm not following how this is any different. To the extent you refinance and pull out up to the max LTV, in theory you would also capture profits, correct? For #1, what investment instruments are you alluding to that isnt real estate?

@Dennis Cosgrave appreciate the perspective!!

Hi all, first time poster, been following for a few months.

Live in Bay Area, CA. Thinking of leveraging heloc to put down payment on another property around where I live, likely in the $1-$1.2M range. Would move family to new house and rent out existing. Likely wouldn’t cash flow existing. Property could break even before capex/vacancy, which really means I’m signing up for a monthly loss estimating $350-500 month while I cross my fingers the 9.5% CAGR continues on what’s today a $1.05M valuation.

Would you:

A) do this

B) if not, how best to leverage heloc for real estate investing

C) tell me what I’m not thinking about

Thanks all for your thoughts.

-Doug-

@William Thomas you would get a better return by taking the additional payment you would be putting into the 15yr and instead buy another property or save up for one. Since inflation is 2% on avg per year, a 30yr fixed mortgage ends up being a steal 5-10 years from now. You could always make additional payments on the 30yr too fwiw.