All Forum Posts by: Brian G.

@Lori Edelman I like where your thought process is going. Just keep in mind a Heloc is best utilized for short term use like rehabbing, a value add play, etc. If you can successfully use a Heloc to buy properties that you then fix up and add value to then later refinance (and use the proceeds and other money to aggressively pay off your Heloc) this can be a great way to build a portfolio. Keep in mind if you move out of your primary and turn it into a rental, you have exactly 3 years from that time to sell and get the section 121 capital gains exclusion (up to $500k profit if married and pay $0 in taxes) which is a major consideration. Good luck with whatever you decide!

@Steven Fleming what "chart of accounts" helped you in tracking your STR expenses? Does Rei hub let you create/edit your own chart of accounts?

@Remington Lyman what’s the best strategy (opportunity) currently in Columbus in your opinion?

@Daniel Vanhala you could apply for a Home Depot card. After getting a card, they have regular offers of 0% interest for 12 months on purchases over $299, etc. You could buy the materials, fix it up and pay a small monthly minimum payment without interest. Pay off the balance before the 12 month interest free offer expires.

@Emanuela Hall hey there. A Heloc is best utilized as rehab funding when doing a Value add deal where you buy something, fix it up (using Heloc funds) then refinance and pay it off. Rinse and repeat. Ideally, you want a plan that pays off your Heloc within 12 months imo. It’s a variable rate but the nice thing about using a Heloc is you can use it multiple times as it functions like revolving credit, ie similar to a credit card. If you are not implementing a value add strategy, you would probably be better served putting a mortgage on the paid off property and/or getting a HEL (home equity loan) as both are fixed rate debt. Keep researching. Don’t be in a hurry. Good luck ✌️

@Nate Herndon what are the typical terms? ie points, rates, etc

@Jason Crowe are you referring to build to rent or executing a brrrr or?

@Mario Morales you should calculate your return on investment. To calculate your cash on cash (COC) return based on what you shared: Net income - principal pay-down divided by total investment (your "all in" cost) = COC. To calculate your total return (ROI) which includes principal pay-down: Net income divided by total investment. To calculate your taxable income: Net income - depreciation = taxable income. Note: principal pay-down is technically part of your profit and thus subject to taxes (it is not an expense for tax filing purposes). Hope this helps. I can't speak to the lending perspective but hopefully others will.

@Ryan Allison is this in Houston?

@Ryan Allison did this project go forward? Has land been purchased? Are there site plans?