All Forum Posts by: George Hernandez

So the reason I want to pay down the mortgage to be able to obtain a HELOC is to obviously invest. Either come in on a rehab or purchase power. In order for me to save $50k plus will take me a couple of years rather than maybe a year tops. I wouldn't do an initial draw at closing. Just to have the line of credit there if the opportunity comes my way.

Good morning Biggerpockets fam!!!

So I need some advise and I'll try to keep it short and simple. I tried to get a HELOC on my rental property, but the bank denied me for a low loan-to-value on the property. Here's my question: Should I use my w-2 income to pay down a lot of principal and re-try to obtain that HELOC? Home was valued at $455k and currently owe $283k. Bank only does 70% LTV on rental property. I believe minimum is $40k they allow to be approved. Let me know what you guys think.

Hey folks,

So I'll try to keep it brief and short. I have about $187k in equity on one of my rental properties. I'm looking at investing outside of California; mainly Kansas. Reason being is because my brother-in-law is out there who can help out whether house hacking a duplex, tri, or even a quad. 2 question: 1. Besides traditional banks to access the equity via HELOC or refinance, what other programs are there via private lenders that will allow me to access that equity? 2. What is the Kansas market looking like for those who have invested there. Is it worth it? Thanks in advance!

Thank you guys! Really insightful on all aspects of the topic. I do not plan on going on this adventure alone, but I do plan on coming in with a partner(s) in the future. Just kind of getting insight before I actually start looking into it by next year. 

Quote from @Matthew Kwan:

If you do HML or cash out refinance, they would still require to be 1st position. However, HELOC allows it be in 2nd position and your 1st mortgage with 2.99% remains as first position. The question is what are you trying to use these funds? What's your main objective that you are trying to achieve?

@Carlos Valencia @Albert Bui

Hi Matthew,
so my objective to is continue on the path to financial freedom through acquiring property. So to answer your question, I want the funds to buy a BRRRR property and repeat the process again. Any advice? 

Quote from @Timothy Hero:

Folks get caught up on losing their interest rate. Oftentimes, it's a bragging right (ego feeding) to say you have such a low rate. I don't know the numbers on your property, so I'll create a hypothetical:

Assume your principal and interest on a $300k loan is $1,263.

You're sitting on the potential to get $155k (tax free, btw), but the rate will be 7.5%, taking you're principal and interest to $2,100.

Yes, it's $900/month more, but you have $155k of tax free money in the bank. Even if you did a horrible, barely cash flowing property with the $155k, it'll still net the difference + some.

Don't get caught up on the "I don't want to lose my rate". Because eventually the market will turn around and you'll lose the equity, which is worth way more than the rate and again, is tax free.

 Thanks Timothy,

I think you are right in the sense that it is a egotistical role in the sense on why I don't want to refinance. I do want to go ahead and refinance and pull that $100k plus to buy another piece of real estate and continue cash flowing for now. I do want to do it at the start of next year hopefully. Any advice? 

Hi Ko,

So I don't have the cash available in the sense of liquid. I would need to do a cash-out refinance or use hard money lender to attain the equity in the property. Here's the thing, I'm stuck in the twilight zone on whether a cash-out refi would make sense only if the next deal outweighs my current cash flow from the rental. I don't think I'll ever see a 2.99%. But would you say a cash-out is better than using a hard money lender to do a BRRRR?

Hi folks,

Real quick, I have an investment property that currently sits on 2.99% on a 30-year fixed and I have about $155,000 in equity that I would love to start investing in; mainly BRRRR's. My question to the community is it worth doing a cash-out refinance for $100k and losing that interest rate or possibly getting a HELOC on the rental property if I can find a lender to do it? Or is it just better to find a hard money lender for a short term of about 1 year depending on the season period a traditional bank wants? I also need to start finding someone to work with and possibly be partners with. Thanks guys and gals!

Hi Justin,

I also live here in the High Desert and I just recently bought 2 SFH here and looking to get into the BRRRR method to increase my portfolio.
I have been looking for other investors who are willing to partner up. You can send me a direct message to my account and I'll get back to you promptly.

-George

Hi Biggerpockets Fam! 
So I recently just purchase a 2 new single-family homes with my dad in the city of Victorville,Ca. We have tenants setup for the first property and the second home will be delivered to us at the beginning of November. Now that I've taken the first steps into financial freedom, I need some guidance into expanding my real estate investment outside of California. I hear that it's best to do so somewhere in the Mid-West of the States, but I have no sort of guidance in how to do so. Any suggestions? Don't really know how to proceed after these two properties. Should I refinance later in the future to withdraw that money and invest it in a BRRRR strategy or how would I go about this? Any insight and help I do appreciate it. Thank you guys!