All Forum Posts by: Eric Cucullu

@Kerry Baird thanks for the input. If I wasn’t married I could shoot for moving to another house and renting this one but the wife will not go for it. The reason why I was trying for the construction loan was because if the expected finished value of the house was going to be 20% more than what the loan was then I would of been able to get into it with just closing cost only and no down payment. That had me interested but didn’t work out.

Sorry for the big gaps in space. I did this on my phone and I don’t know why it did that.

First of all sorry about how long this is.

So here's my situation. I was able to buy my house as a fixer-upper. Got everything fixed up and made it good. After the house was re-done it appraised 147k on a 62.5k loan. I was in able to turn around and get a HELOC with a 61k limit.

Obviously I was very happy with that. So my strategy was to find another place to fix up to make a rental. my goal was to get a Construction type loan that would let me get my hands on another place. Then I was going to use my HELOC to rehab it. Then I would get a conventional loan To pay the other loans back. Then was going to to a HELIC on house number two and keep going with a Domino effect.

Well now for the issue....so even though I have not touched my HELOC credit score is very good and no history of missed payments, Unfortunately the bank says I do not have enough income to be able to do a construction loan. Because of this I'm kind of stuck.

My question is what would you do if you were me? As of right Now I’m partnering with a buddy of mine and might be able to help him get rentals and the way I help him is by being treated as a hard moneylender to cover the rehab and when he does a cash out refi I would get a bit on that end.

If that works out should I focus on paying my mortgage off quicker to where I can raise my HELOC?

If I do pay off my mortgage completely and have the higher HELOC will that make it to where they still will not let me get a loan?

Going to drive out to it today and get a good look at the outside and see if there are any surprises. Like I said before bathrooms will need overhaul for sure but if the rest is flooring, paint, cosmetic things, then even with the size I can see it being doable as long as I find out if houses in the area are actually selling.

Yeah that's one of the things that has me nervous too. My house is only 1700sf so that was manageable. To help with cost, things that I want to make sure are done to code like plumbing and electrical I would have done by licensed tradesmen for sure. When it comes to flooring, carpentry, paint work I have handymen I can trust to do those things. 

I still need to see it in person but from the pics the bathrooms are gonna need more work than anything else. Especially getting rid of that GIGANTIC tub haha. 

After making out well with my home (80k invested including purchase of home now work 147k) I am now looking to do my first fix and flip. Of course being my first one I am nervous.

I am trying to get opinions on if this would be a good house for a first flip. My plan is to offer 60ish. Should give me room to work with to do a lot of changes (which it needs). Looks like houses in the area that are smaller but newer are for sale for more and they aren't right on the lake, but I can't see what has actually sold and for what price. 

Link to house 

https://www.zillow.com/homes/for_sale/Pearl-River-...

Some things that worry me is that its quite a distance from any cities. There is a town not to far away but figure just the nearest Wal-Mart is like 30 minutes away. 

Open to thoughts/suggestions.

Bit of an update for anyone interested and for anyone who wants to give advice...So I did finally make it to chase and I am pretty happy with the terms. Have not started it yet though. Also there is a chance I may be able to only put down 10% on an in house loan at the local bank again.  

Things are coming together. Now its just a matter of getting the courage to pull the trigger and to start looking for a place.

Well could not make it to the bank today. Weather was real bad when I got off of work. Will try tomorrow.

20% is what I have been seeing. My local bank took a chance with me doing the 10% down on my home to do repairs. Never missed a payment and they had no issues during the year I was rehabbing it. I am hoping since they did it before with no issues maybe they will work with me again knowing that I would be a repeat customer. Also my bank account is there along with a small loan on a car. I could pay the loan off any time but like to show a good payment history on items.

I plan to along with knowing the prices houses are selling for in the area. Even though things worked out great with my house, I did not want to rush to the next without tons of research. Pretty much been doing that for the last 1 1/2 years, and feel like I just need to gather the courage to do it. According to www.nerdwallet.com Chase bank has it to where on their HELOC there are no closing or application fees and charges a $50 origination fee and $50 annual fee. Think im going to take a trip there after work today and see what they have to say. If it all sounds good then I will get my house reappraised and go from there.