All Forum Posts by: Chantelle P.

@Joe Splitrock

Thanks for your thoughts here Joe! I really appreciate the balanced input...I'm definitely crunching numbers on a new payment on the STR. Thankfully payments would only be about $200 higher and I would still have quite a bit of equity even if the market falls quite a bit. But I'm going to consider possibly pulling a bit less out just in case. And I'm trying to keep that savings growing also so I can get back out there and find another deal.

@Kerry Baird

That's exactly what I was feeling. It does cost money to get my hands on the equity in that STR but the money is sitting there useless in the house so I think it makes sense to put it to use! I've taken out 2 other HELOCs in the past and spent them only on investments...so the HELOC can be a really powerful tool I know. Looks like this one's just going to cost me a bit more sadly.

@Caleb Heimsoth

Thanks Caleb! I think I'll do just that. I'm not in a rush as I'm cash flowing some now and if rates are going down why rush? 

@Michael Tyler

Hey thanks! I like your thoughts on HELOCs or any kind of credit line getting pulled in the case of a recession. That makes sense! 

And I'm with you on having to learn the ropes with financing in different states. The first time I went to purchase properties in PA I was in big shock over how stringent their loan guidelines were. But this is why creative people do well in REI right? :)

@Todd Rasmussen

Thanks Todd. The cashflow is about $200 on each but that included the cost of the HELOC interest. If I do a refi on the STR I'll pay that off. I haven't yet done the math on where that would put me with a 30 year conventional. That's what I need to do next I suppose...and if rate are likely to keep dropping perhaps I'll wait a bit any kind of refi on the PA SFRs for a little.

Thanks again for your input. I really appreciate it!

@Will Fraser

Thanks for your thoughts here. I appreciate you taking the time to respond. :)

@Todd Rasmussen

Thank you so much for taking the time to read my LONG question here! This is some solid advice. 

Yes, the commercial blanket loan is a 20 year. And I should know this but is it cheaper to do a rate term refi than a cash out on the 2 new rentals? I agree it's not worth it to pay 3K in app and closing costs for 10K. 

Thanks again! I really appreciate your feedback. 

I've been reading David Greene's BRRRR book and have sort of accidentally been using elements of this method for years but have a new scenario with lots of moving parts and thought I would throw the variables out there and see if I could get some help from those of you who know much more than I!

Okay, so I own 4 rentals total, one is an SFR Airbnb here in SoCal where I live. It's been bringing in a nice income for the last 5 years (3-4K net monthly) and I have about 450K equity in it. I also have 3 rentals in Pittsburgh PA. The first one I bought a few years ago, paid 25,5K cash, put 7K in and ended up netting about 6K yearly. I recently refi'd that property and pulled out 20K to help fund 2 more SFR purchases in Pittsburgh. I used an additional 22K from a HELOC on my primary residence for the down and rehab, so that's a total of about 45K for down and rehab for 2 houses. I raised rents on the first one (purchase price 39,5K) from $550 to $775 and the second one (purchase price 44K) from $700 to $995. I used a commercial lender to do loans on both these houses plus refi the first house...all on a blanket loan.

So my question is should I try and refi my 2 new rentals into conventional loans? My current commercial rate is 5.4. Thant said, I don't have a ton of money in the deals and it's only been 4 months since I closed on these. I obviously wouldn't be able to pull much out since I only have 10K in each deal and I think they would each likely appraise for about 10-20K higher than purchase price. The comps are all over the map.

And the other question is whether its better to refi my Airbnb or take out a HELOC on that. There's about 450K in equity in this guy but I have a decently low rate on a 30 year fixed loan on it.

I want to pay off the HELOC I used to purchase these last to rentals (balance of 23K on my primary residence) and use the remainder of the refi or investment HELOC money to go and reinvest on another "cash" deal.

Hoping there aren't too many details here to make sense of all of this!

I'm on the brink of making this a more full-time endeavor, been listening to the BP podcasts on all my commutes and am just hoping for your seasoned input here! I love this forum and have learned so much just reading about other people's experiences. Thanks for your thoughts!!

@Joe Martella

Sorry for the delay here. I actually invested in 3 different part of Pittsburgh. Elliott, Blackridge and Penn Hills. I'm with a management company called Real Property Management and they've been great for the most part. Hope that's helpful!

@Kwame Darko

Well that's great! It's always nice when things come in better than estimated. Hoping the rest of the process went well!