All Forum Posts by: Femi Ibrahim

If this is a personal residence, and there is appreciation in the area, and you also want to defer taxes, you can use HELOC. You get to still keep the property.

@Forrest Williams You said you house hacked your couple of houses. Can you explain what strategies you used, am also in a house-hacking situation. Did you buy multiple units and rented some out, or you bought below market, fixed up and lived in a couple years before selling? I am asking because the latter strategy would require to pay taxes on the gain if you sell before the 2 year mark.

@Morgan Price Quick question, which area of Colorado are you buying at? I'm exploring out of state right now. I am in the DFW area, and prices are high here, with low rents. Also, why do you want to move to Tennessee (would that  be real estate induced, or a personal reason). Is it not profitable to real estate-invest in your current location?

Also, regarding your question above, you can use the HELOC anyway you deem fit, but since it is a loan, it's best to use it on income-generating endeavors.

@Nikki Closser. Congrats on your first deal. I'll say this is really great. I have a few questions though. I'm also planning to get into the multifamily route

1) Did you say you bought a 6-unit property at $290k? That is really cheap considering where I live (Dallas), you could hardly buy a single decent house at that price. In which city is the property located?

2) Why would a seller want to do owner finance instead of getting the full price. Is there any advantage to the seller doing this?

Thanks

Femi

@Chase Taylor

I'm also considering taking out a HELOC on my primary residence. Can you send me the details of your current lender? Thanks

Thanks in anticipation of the responses I'll get from this post. Not sure what the best line of action is in reaching my goal of financial freedom via real estate. My financial goal is monthly income of $10k.

I currently have a monthly household income of $17k, with $14k after all expenses including mortgage.

I currently have a mortgage of $300k. My plan is to pay off the mortgage in 2 years. After paying off my mortgage, I plan to use HELOC on the house to fund my real estate goal of buying rentals using BRRRR.

Is this a good plan to pay off mortgage first and use the HELOC after the second year, or it's best to use my current monthly income to buy rentals?

Also, are there recommendations of out of state locations where I could buy cash flowing, as well as appreciating rental property with a max price range of $100k - $120k? In the Dallas Forth Worth (DFW) area where I am from, housing prices are high and rents very low. Rentals do not cash flow in this area.

I'll appreciate your thoughts on:

1) If I should pay my mortgage first, and use the HELOC?

2) Ideas on out of state locations with cash flowing and appreciating rental properties with max price range of $100k - 120k.

Thank you all.

I had title insurance and owner's insurance, but I was told these issues are not covered by the insurance.

@Henry Vu. Do not fall for them. They tell you the property sells fast, making sure you don't do any due diligence. I'm glad you saw this post.

@Alvin Uy, I went to the site, and we walked through. The backyard of the house was fenced, and there was no flag as to boundary issues until someone walked up to me while I started renovating, and showed me the real bondary.