All Forum Posts by: Igor Aybin

For primary residence, investment property held in my own name and investment properties held in an LLC, I'm interested to find out which financial institutions offer HELOCs and Cash Out products and the details for each. I realize, this may sound like a tall order. But how do you find this information out so that you can pick your "optimal" choice?

I've found and worked with the same credit unions and Asset Based Lenders for a while but I'm looking to understand this landscape more broadly. Outside of manually finding a financial institution and calling them, what a good way to gather this data?

@Kenneth

Thanks for your reply. I completely agree that 10k is very small. What I am trying to understand is how do we know that. I'm looking for a financial/mathematical approach to making these decisions. As I'm sure you can imagine, there would be scenarios where the numbers are different from my example and we wouldn't be able to easily know right away what the right approach is.

Hello everyone,

Historically I'm a BRRRR investor. I've recently encountered an interesting scenario that I hadn't considered before.

All following numbers are approximations and exclude any tax implications:

I've recently purchased a property for $90k. After settlement and repairs, I will have spent $127k. The ARV is $150k and we can assume a 75% LTV, with a 4.25% interest on the loan with a 25 year amortization.

After applying my formulas, I can flip the property and make $10k today. Otherwise, I can keep the property and leverage it. After leverage, I will be out of pocket about $16k and I will net a positive $500 a month cash flow ($6k per year).

I am trying to decide which path to take and I'm using NPV calculations. However, even after I have the numbers in front of me, I can't decide on the right course of action. I seem to want to go back to my strategy and I think "my goal is to build a passive income portfolio, $10k now would not allow me to do anything more than I am already doing". However, this doesn't totally feel like the right answer either.

So specifically in a scenario where a property would "work" as either a flip or a rental, how do you objectively decide which option is financially better? What math and thresholds do you use and how do you decide?

-TIA

Igor