All Forum Posts by: Frank Costa

Thank you to all for the quick and useful feedback thus far, it's much appreciated!

What rules/restrictions are there regarding the use of a HELOC for the down payment of an investment property? What if I where to find a SFH that's a viable "read to go" long term rental (no BRRRR strategy required), can I use HELOC funds for the down payment when I approach a traditional lender to finance the deal?

Assumptions: HELOC on primary residence, excellent credit, full time employment, 20% down (HELOC funds), 80% balance in a 30yr fixed.

Thanks, Frank

Jacob,

Are you accepting last minute attendees? I'm trying to work out my schedule so that I can join the meetup but its unclear at the moment. 

Best regards, Frank

Thank you Hadar & Justin!!!

I really appreciate the feedback!

Can anyone provide me with an example of an effective letter used to approach an owner of a 6-8 door garden style apartment complex? The property is not currently on the market but I'm very interested in planting the seed to see if there's any interest in selling. Other than the basics of introducing myself and presenting the intent, is there anything else you would include to gain the desired attention?

Thanks, Frank

Thank you Adam &  John for your helpful advise, I really appreciated it!

I just came across this info after doing some further research. The article focused on No Seasoning Cash-Out Refinance. Here are a few takeaways: 

• New loan amount may not exceed cash paid for property + refinance loan settlement charges
• A HELOC is an acceptable source (treated the same as cash)
• One limitation was the subject property could not be closed in an LLC

The first bullet is a disappointing rule, I wonder if this applies to a cash-out refi with 6 months seasoning? In other words, does it pay to wait?

Alex & Mike - thanks for the feedback, much appreciated!

Is a HELOC a viable option to buy a SFH with the intent of using the BRRRR method? Unfortunately ready cash is not available but I have plenty of equity in my primary residence. That said my HELOC limit would enable me to pay for the target property in full.

So if I were to utilize this tool, would I be able to do a Cash-Out Refinance once the renovation period is complete? If yes, what's a realistic time period to contact a lender to begin the refinance process? My thought is to repay the HELOC balance ASAP. Also am I overlooking any other obstacles?

Thank you in advance.