All Forum Posts by: Erik Perks

@Jon Allen student enrollment is down quite a bit and we are in the state of Illinois.  We just operated without a state budget and the university is a large employer.  As enrollment goes down it has impacted all businesses in the area.  

There are plans to get enrollment up over the next few years but I’m sure every university has those plans.  

@Jen Harwood if you are still looking for a good agent in Indy I have one.  I have worked with Chris over 2 years now and have 6 properties with him.  Just send me a PM on here and I will make the introduction.

Erik

Another well written article.  With an article like that and references to the Fair Housing Act it makes me even more comfortable knowing you are my property manager. 

@Mark Buskuhl makes a good point on the cost of credit, a HELOC is very in-expensive to secure the credit upfront versus what I learned about the BRRRR method is two things 1) typically can't go over a 75% LTV on a cash out refinance and the origination fees are infinitely steeper than a HELOC and can end up in the $1000s. With that said you need to make a significant improvement on the property for the BRRRR otherwise the cost of getting that equity back out can put it well over 10% (and you are just taking it out to invest in a 7 cap), which means its cheaper to not refinance in the end and leave the equity in the rental.

You can typically lock a rate with a HELOC after you a balance on it you can "freeze" that balance at a rate. So if you knew you had a $50k HELOC, used a lot of it, you could freeze $25k of it at todays rate to avoid the time risk of the rate going up.

Message me if you want to chat more, I have done a BRRRRR, HELOC, Cash out refinance, traditional refinance all in the last 18 months.

@William Ferrell If you need a 5th opinion let me know :)

@Amanda M Laird I have 4 SFH and 1 condo in Indianapolis. I have purchased them all in the last 18 months.