All Forum Posts by: Holly Hudson

I am trying to get a HELOC on our home. At 85% LTV they say there is $158,000 we could get. But they are asking what the funds will be used for. Searching the web I've read that banks want you to use it on the primary home, the one the heloc is on, to update it and increase the value. Other reasons were college and credit card debt. I was thinking about using it to rehab an investment property, about $18,000, we just bought and save access to the rest for reserves should this current economical state continue for many months.

Has anyone had experience with this or know what the banks are looking for? This will be our first HELOC.

Thank you for your advice and knowledge

Holly Hudson

@Melanie McDaniel

Thank you for the advice. We have scheduled an inspector that says it will take about 6 hours for the 7 units and walked me through how to look at all past county permits and views of the property for changes. We are requested all documents mentioned also. Thank you!

@Bob Floss II

Thank you. We are finding the same to be true. Learning all the way around. 

Taylor L., Bjorn Ahlblad, Mary Mitchell, Greg Dickerson

Thank you all for your knowledge and insight! We feel we have a stronger foothold thanks to your responses. I appreciate your support. We have already started with some of the basics we have learned from SFR but will definitely be adding the attorney and multiple contractors if we make it to inspections. And even though we are planning on self managing getting a PM company advice is a great idea. And it will help us be prepared and add to expenses appropriately in case we do need them.

May your investments continue to be prosperous!

Hi BP!  We own a few single family properties we use as rentals. While looking for another in a different state, with a new to us realtor, we found a multi-unit (over 5 units) that we are interested in putting an offer on. Only then did we learn that this will be the realtors first commercial transaction as well. Great guy but probably not the best scenario to have newbies figuring this out together. But we are where we are. 

I've learned from BP that what I do not know is mind boggling.  I'm digging into BP and the www to take a crash course on trying not to make huge mistakes. SO, would you mind please informing me of what I need to know (right after the part about starting with an experienced commercial realtor) What a realtors part would usually entail, what buyers should be doing.

Don't be gentle. I'm excited to take this next step in our investing journey and know it will be an education in itself, but I want to make sure I understand the purchasing requirements and process and steps to be a success for all parties. 

Thank you!

@Dave Foster. Thank you for the conformation and added ease to hopefully explain it to the current owner. We hope to reach the best scenario for all parties.

Thank you for the insight @Jaysen Medhurst. I was thinking something along those lines but did not know the specifics, or how to word it.  We do plan to hold it long term. The current owner seems ready to have cash to use in retirement so I am hoping this meets those needs. Thank you again!

Thank you @Jaron Walling. Yes that is what I was referring too. It will definitely need work and improvements so I appreciate the added information about refi in a year. 

I am interested in a 7 unit property. This is the last investment property held by this owner. Asking price is around $800,000. Owes about $250,000. He bought it with 1031 but wants to get out this lifestyle and will not be buying another. 

He says he would prefer not to offer seller financing but may consider up to 100,000. Is there a form of purchasing that we could offer that would help decrease or postpone the tax repayment for him?

Thank you in advance for all information and thoughts. 

Thank you @Brian Woods. I will look at all of them.