All Forum Posts by: Henry Salinas

Today I set forth a huge decision. Placed an offer on a house in Baytown tx. 
145k. repair cost coming in at 50k and arv right around 265.
I have a Heloc that has 90k available 4.25% 10 year. 
My plan is to use a HML to buy the property and pay for repairs. I will be using around 35k for downpayment and closing cost from the heloc. The HmL I choose to work with has zero points if I put down 15% then it's 1.3% monthly. His loan will be right at 160k so Monthly interest will be 2133. Contractor estimates 5 weeks but I'll say 2 months of HML holding. Which again will be paid for by the Heloc. At this point if you're still with me, my heloc balance will be right at 40k , but since it's interest only the monthly payment will only be 142 monthly.
I will then do a cash out refinance for 75% of the 265 which puts my mortgage at 198.75k let’s call it 200k.  This should in theory pay off hml and get my heloc balance pretty close to zero. 

If you’re still with me, thank you. Please guide me if there’s some type of error in my strategy. Very much appreciated, after 3 years lurking on bigger pockets. I made some big moves today. 

@Randall Alan 

wow thanks for that amazing response. Really inspiring. I’m gonna look on Redfin. Thank you! 

I’m with you here. Live in Seabrook so not far away. Got 100k sitting on sickem but it’s hard to find a deal. Good luck! 

@Randall Alan I need a mentor like yourself. I’m starting this journey myself, getting funded 100k heloc next week and I’m on the hunt big time! 

Thank you. I feel like my financing is squared away, have contractors ready, only thing missing is the project home. Gonna have to put more time into writing letters and knocking on doors.

In the Houston area(go Astros) and I’m in the process of getting my first Heloc. Qualified for 100k. My plan is to buy a home right around 100-120k, rehab with 25-30. Then refinance with arv of around 200, in order to finance 130-140. 
The heloc is at 4.5% and hml are normally 12%. So should I use up a good chunk of heloc and minimize the hml cost.  Just looking for input on how others have taken this on. 

I’m looking at buying houses under 130-150k.

Plan is to use heloc for downpayment and the use a HML to complete the purchase and enable the rehab… once rehab cash out both and hope to have a renter soo in order to repeat.

You did exactly what i want to do in Houston TX at around the same price point. I just approved for a HELOC with 100k. Going to possibly use it for downpayment, then hard money for purchase and rehab.

Hey everyone, Im Henry, from Houston. 

Been lurking on BP for a while now but just recently decided to make some money moves. I built up a good bit of equity in my home and im finally going to use it. Im in the process of getting a HELOC for 90K that i intend to use for BRRRR. Last week i started an LLC for tax incentives and super excited to get the process going. As ive been on BP ive realized finding the homes is the hardest part. Ive been looking on Myhomedeals and also have a wholesaler with NWA sending me their list of homes. I have a contractor ready to work that ive had remodel previous homes after floods ready to go. I have ton of drive but just need a little sense of direction. Now that things are coming together to get started.

Besides find a good deal. What do's and donts should i follow.

thank yal