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All Forum Posts by: Joseph Jackson

Joseph Jackson has started 6 posts and replied 23 times.

Post: Cincinnati - UC area Property Manager

Joseph JacksonPosted
  • Investor
  • Los Angeles, CA
  • Posts 23
  • Votes 3
9-year owner in the UC/Clifton market. Self-managed for years, but just don't have the proper time to manage the older homes with high turnover that are typical to the UC area anymore. In fact have moved out of the area so now it's just not doable. Was hoping to hear if anyone has had any success with any good property managers that regularly do business in this particular area? Any help would be greatly appreciated. Thanks!

Post: Using PR HELOC for Down Payment on Investment Property

Joseph JacksonPosted
  • Investor
  • Los Angeles, CA
  • Posts 23
  • Votes 3

@Fred Grant That's exactly my thinking.  I don't want the money sitting in my house earning almost nothing.  Again, we're in Cincy, and the appreciation potential here just isn't much at all.  We're talking expected annual gains of maybe 2% if you're lucky.  I could take all that money out of the house and put it to work in a myriad of other possibilities and achieve better results.  And as many others also feel, I don't consider my primary residence an actual asset. 

We're maybe moving here soon for jobs, and will be keeping the house we took the HELOC on, and renting it out. The comparable rents in this area will cover the first mortgage, as well as the HELOC, and should still give us positive cash flow even after vacancy and management. We may be renting a place temporarily when we move, as the new job is in a higher-cost area and we may not be there for more than 3 years.

So I'm looking to turn our current primary residence into a cash-flow bearing investment, use its HELOC to secure another new investment property, and I am also actively pursuing investors for a separate partnership deal, to use them as the basis for a new mortgage without my name on it, while I put the deal together and oversee it moving forward. Exciting times, my friend. We'll see how it all goes. Sounds like things are going well with you, too.

Post: Using PR HELOC for Down Payment on Investment Property

Joseph JacksonPosted
  • Investor
  • Los Angeles, CA
  • Posts 23
  • Votes 3

@Kyle J. thanks for the heads up.  

Post: Using PR HELOC for Down Payment on Investment Property

Joseph JacksonPosted
  • Investor
  • Los Angeles, CA
  • Posts 23
  • Votes 3

@Fred Grant thanks for the reply. Glad you've had good experiences with this. Yeah, the HELOC brought my total LTV up to 80% on my primary. I'm fine with that, as I live in a Cincinnati suburb where frankly the valuations just don't fluctuate all that much, even in really bad times like 08-09 where we saw maybe 10-20% downward pressure on average. Just not a hot market : ).

Anyway I wanted to clarify with you. So the bank you found didn't care about the funding for the new property being a HELOC. Did they want the HELOC to be open for any certain period of time, or any other parameters be met? I guess from my point of view it would almost seem like why would a lender allow the down payment to be financed through an outside debt? Hence why they don't allow for you to take out a personal loan or use credit cards to fund a down payment. But, the HELOC is secured by your home, so that is probably the difference.

So if I were to go to a bank and want to close on a property within a month, after just closing on my HELOC, using ONLY the funds from my HELOC and not having additional dollars in checking/savings to show them, you think it's likely that an investment loan could get approved in this manner?

Thanks again.

Post: Using PR HELOC for Down Payment on Investment Property

Joseph JacksonPosted
  • Investor
  • Los Angeles, CA
  • Posts 23
  • Votes 3

Hello all.

Was hoping to get some people to share their experiences with doing this.  I have secured a $30k line of credit against my primary residence, primarily to be used for investment opportunities.  Ideally, I'd want to use this amount to cover the down payment requirements on an investment property.  

My question is do lenders ever push back on allowing a line of credit as the source for the down payment?  Brandon Turner mentioned this in his book as a way of securing financing without using your own checking/savings. 

If a lender will allow you to use these funds for the down payment, are there any other parameters that need to be met?  I have read that some may require the funds used for down payment to be accounted for in separate accounts for a period of time.  Is this commonplace, am I totally off, or any others thoughts?

Thanks!

Post: Ease of Taking a Cash-Out Refinance

Joseph JacksonPosted
  • Investor
  • Los Angeles, CA
  • Posts 23
  • Votes 3

@Thomas Dionne That's really interesting to me. I might have to look into them. Since you pay for your place with cash and then take out the HELOC with TDBank, I wonder if it's any different for someone, like me, who has a current mortgage on their place, meaning maybe they wouldn't be as willing to go up to 90% LTV, if they'd be willing to give such a low rate, or if there would be any sort of conflict between the one bank giving the HELOC and the other who the first mortgage is through. I could see the issuer perceiving the risk of giving the HELOC out on a non-mortgaged property would be less than giving it to someone who has a mortgage already and thus additional potential repayment risk, but maybe this isn't so.

Any thoughts on that @Robert Sepulveda?

Post: Renting Single Family in Cincinnati - Anderson Township

Joseph JacksonPosted
  • Investor
  • Los Angeles, CA
  • Posts 23
  • Votes 3

@Joshua Myers I'm glad things are going great for you and your wife in SoCal.  We're looking forward to it.  It's a big change and there are obviously hesitations, but I think it'll be a great overall move for us at this point in our life.  Thanks for sharing your experiences, and since we're both Ohio natives investing in real estate in Cincy and relocated to SoCal, definitely reach out anytime if you'd like to connect further.

Post: Renting Single Family in Cincinnati - Anderson Township

Joseph JacksonPosted
  • Investor
  • Los Angeles, CA
  • Posts 23
  • Votes 3

@Justin R. Giving back and building real relationships is something my wife and I intend to do.  I read your comment to her and she really appreciated you saying that.  Thanks, that's great advice.

Post: Renting Single Family in Cincinnati - Anderson Township

Joseph JacksonPosted
  • Investor
  • Los Angeles, CA
  • Posts 23
  • Votes 3

@Justin R. Love it!!!  So you think I'll be OK if I go without buying the Mercedes, then? ????

Post: Ease of Taking a Cash-Out Refinance

Joseph JacksonPosted
  • Investor
  • Los Angeles, CA
  • Posts 23
  • Votes 3

Oh, one other things, @Robert Sepulveda. As far as DTI, do lenders focus solely on your household W-2 income to cover the thresholds these days, or do they allow for executed lease income to be included in that total figure, offsetting the debt?