All Forum Posts by: Frank Apap

 Thanks for the follow ups.  Being new to this, is my understanding correct that you can either have full property mgmt (paying the 30-40%) or you can basically do some of it yourself and find more of a handyman / cleaning crew?  I guess what I am looking for is someone who can do all of the things that you need to be "onsite" for, while I'm happy to o all the communications, payment stuff, marketing, etc.

Hi, wanted some high level advice / thoughts.  My brother and I both have good day jobs and also run a profitable website as a side business (total business profit of 60-80k a year).  Aside from our stocks, 401k, etc we have some extra money to invest and were considering a vacation / rental property to diversify a little.  The property we are looking at is around 230k in the Poconos (PA).

A few general questions:

1) Anyone have experience with Pocono vacation rentals?  What type of occupancy have you seen?

2) Is the idea of running a vacation home from afar (about 2 hour drive) nuts?   (Vacation rentals are really possible where we live).

3) Our website is run under an LLC and is profitable. Could the LLC buy the property?

4) Any other tips or advice is welcomed.

Thanks!

I just logged in to post basically the same exact question, the only difference is that my wife and I were considering some place in the Caribbean. Anyone have experience with a vacation / rental property in the Caribbean?

Thanks - there never was a construction loan. There was just a first mortgage (regular). The construction was paid with the equity in my other home (that is closing Monday).

Here is my situation. About a year ago I purchased a "tear-down" home and started new construction (we'll call this new home). I've been funding the new construction using a HELOC on my current home ("old home"). At the end of this week I will be selling/closing on the old home, making the HELOC go away. The new home will have an approximate value (when complete) of about 700k and a mortgage of about 250k (the original purchase price).

Now, for my question, I plan to take a HELOC (or loan) on the new home to finish the construction, pay back some bills etc. How early can I apply for the HELOC/HEL? Does the new home have to have its final CO? The home is about 80% complete, but isn't fully livable yet - but from a value standpoint as-is its worth at least 550 by my estimate. I'm only looking for a loan of about 100k.

Thanks for any/all advice.

Thanks. For the record the home is probably worth about 500-525 (which gives me equity of 300-325). I guess the 80% is the magic # I was looking for - also if there is any maximum.

Hi, first off thank you to anyone who spends the time to read my situation and provide some feedback.

I currently own a home on Long Island that has probably about 300k of equity. I'm considering buying a "home" that I would be totally knocking down to build my next house. My goal is to build the new home before selling the first house (and selling it near the end of construction).

I'm trying to decide between a 203k loan and taking a HELOC on the first house. As I see it the 203k would allow me to get more money out but would come with some restrictions and extra headaches. The HELOC would probably have less headaches right? However if what I read is correct I would only get 240k out of it - correct? The construction on the new house will cost more than that.

Any thoughts on what I should be looking in to?

I'm in Long Island, NY.

Here is my situation. I live in a home now that is worth about 550K. I have 210K left on the mortgage and about 100K of liquid money. I'm interested in having a new home built (and selling my home). The property I'm looking at is about 250K and I will be spending approx 325k to rebuild a new home (this is not for an investment but my actual primary residence). My question is what are my options to fund the 325k in construction? Is there a way to get a loan based on future value of the home (after the construction)? Should I try a HELOC?

I realized that vacancy should be in the spreadsheet. However, with that said even with a small cash flow - to calculate a true ROI don't I have to factor in the fact that principal is being paid off on the property (e.g. the bottom part of the graph)?