All Forum Posts by: Eric Rodriguez

Hello BiggerPockets, 

I would like to hear your thoughts on the best way to work with contractors in a way that one pays for materials, still pick finishes but have the contractor handle all the materials pickup, exchange, returns, etc? 

Current situation: Spending too much time building orders and picking up materials at Home Depot and Lowes for rental property rehab. 

I really appreciate your comments and suggestions, thank you!

I don't have an issue to use the HELOC for down-payment, the problem would be to use the HELOC for my reserves immediately.

@Amy Kendall

That's a good idea, we could try using the same lender and see if it makes a difference. I'm going to look into that, thank you so much!

@Brian Cardwell

Basically there is no way you can use HELOC as your reserve, the banks will never allow it right?

@Andrew B. 

That's right, that could be it. 

@Matt K.

Yes, we have reserves for our current properties, the HELOC would be for the down payment closing costs and reserves for the new investment property primarily.

Hi BiggerPocket,

I recently reached out to my lender to ask about using a home equity line of credit as my down payment and reserve funds for purchasing another property and was informed that this is viable however, the lender requires a minimum of two months for the funds to be sitting in the bank. Is this your experience with all lenders or is there a way around the two month waiting period? Thank you in advance guys.

@Zach Kidd thank you for your suggestion! This is certainly a reasonable option that we are considering

@Nicholas W. Thank you for your input, we did some more research and found out from the town that it is a traditional septic and the septic capacity is 750 gallons, the third bathroom is legal and they have a receipt for it being serviced in August 2015 and the septic was reported as being in good condition, however it hasn't been officially inspected in a number of years. The fact that the tank was so full upon inspection has also been speculated to be due to recent rainfall and a potentially poor seal or clogged/ineffective baffles. The issue we face, if the septic is adequate, is in regards to the grey water and the issue it may present during our appraisal for our FHA loan due to the fact that, as mentioned, disposing grey water on to the lawn is not entirely legal.

@Percy N. thank you for the suggestions, these seem to be our most popular options so far