All Forum Posts by: Frank Avallone II

Hi @RaeAnne Conat, there are specific lending options that cater to this type of scenario. I sent you a DM. 

Hey @Brandon Morgan, I think either option can be okay as long as you are running the numbers correctly and you understand the terms of your HELOC.

Most investors will indeed use the HELOCs for flips because they are generally quicker transaction where you use the money to gain a return which will allow you to pay the HELOC off quickly. 

When you are buying a rental property if there is no plan to pay the HELOC off quickly you could run into some issues if the HELOC rate is adjustable which many are. 

Again, everything is situational because if you find the right property this could still make sense. 

Another option would to use this HELOC to start the BRRRR Method. You can buy the property, renovate it, rent it out, then cash our refinance to pay the HELOC off and get your money back.

Feel free to reach out anytime.

That is exciting @Graham Scott !

Let me know if you need any assistance with any part of the process. I would love to help!

Depends on your market and preferred lifestyle but house hacking could be a great way to get the best of both worlds! That is how I started.

Another alternative could be buying a home that needs work that way you can accelerate the equity being built and then use that equity to invest.

Hi @Ben Chung,

I would be able to help you out! As @Zachary Ware mentioned. It won't be as favorable of terms but we offer them. I have utilized them myself and think it's a great option even with the less favorable terms so that you can refinance out. 

Hey @Brad Horner, 

You can not use an FHA to buy an investment property as it is for primary occupancy only. You could utilize the house hacking strategy here though which would be having your brother buy it with an FHA loan 3.5% down, live in it for a year as his primary residence, then reassess the situation and rent it out from there. You are only required to occupy for the first year.

Hey @Karina Woodward, do you have a local real estate agent that you can reach out to? That would be my first call in this situation. Then after that potentially speaking to an attorney also wouldn't hurt. With any type of rental the location specific rules and regulations could have a big impact on your investment.

Also depends on if you need the money for the next investment or not. If you allocate those funds into another property does it cover that potential loss you would be taking by extracting the additional money?

Congratulations! Glad it went well!

Hey @Marvin Scott Díaz, love hearing your plans to get into real estate!

I think it is great to become a real estate agent and couple that with being an investor.

If you are going to be using an FHA loan to purchase this first property then you would need to live in it and own it in your name for the first year. Since it is a primary residence an LLC can not own the property until after this period of time. In my opinion I would probably hold off on the LLC for now.

Cheers!