All Forum Posts by: Jake Tiffany

Hey everyone, many of you send mailers, texts and all sorts of campaigns to try and find deals. I'm attempting many of these strategies as well. I'm a newby so I haven't had much luck yet, but that's ok I'll keep grinding.  I own one rental currently and am looking for more. I get calls, texts, cards and letters constantly on this rental. Lately, I've started thinking maybe these people are wholesalers or investors that could have properties to sell. So I've started texting them back saying that "I'm not currently interest in selling but am trying to build my portfolio. If you have a buyers list, I'd love to be included." A handful of people have responded and asked what my parameters are, etc, which I thought was pretty exciting. Of course, after that brief interaction, I'm pretty sure I just become lost in a sea of other text messages.

My question is do any of you see a way to utilize a strategy like this?  I've had a pretty good percentage of people respond which is nice but that's all. Any ideas for what I could/should do next to capitalize on all these messages from potential owners with properties to sell?

OK thanks Kristie, that makes me feel better. It sounds like I'm probably overthinking it. I'll ask about the caps and other penalties. This was very helpful. 

@Kristie Giles thank you for responding. Both banks have simply said they will give me prime. I should mention that the 5.5% will adjust in November 2024. The HELoC is only simple interest so wouldn’t the additional cash flow of paying off the house with bank 2 plus the extra $10k be an advantage?

I'm planning on buying 3-4 houses this year and brrrring them. I have one rental property already and $50k cash. I should be able to get about $130-145k by taking a HELOC on my personal home and the rental, along with the cash. I've narrowed it down to two banks, below are the two scenarios. I'm curious which decision the community would choose and why.

Bank 1. My rental mortgage is with this bank. I owe $48k at 5.5%. They will give me $87k at 7.5% HELOC for my primary and rental equity. They will give my 75% LTV. With my cash, in total I'll have $135k.

The rental cash flows $190 per month after MTG, vacancy, repairs, CapEx and taxes.

Bank 2. I will have to use my cash to pay off the rental property for them to give me a HELOC on it. They are giving me 80% LTV so the total I'll have access to is $145k from the now paid off rental and my primary residence.

With the rental paid off it will cash flow $690 per month.

I’m leaning in one direction but since I’m new to all this I’d appreciate any feedback and opinions from more experienced minds. Thanks in advance everyone.

I'm planning on buying 3-4 houses this year and brrrring them. I have one rental property already and $50k cash. I should be able to get about $130-145k by taking a HELOC on my personal home and the rental, along with the cash. I've narrowed it down to two banks, below are the two scenarios. I'm curious which decision the community would choose and why.

Bank 1. My rental mortgage is with this bank. I owe $48k at 5.5%. They will give me $87k at 7.5% HELOC for my primary and rental equity. They will give my 75% LTV. With my cash, in total I'll have $135k.

The rental cash flows $190 per month after MTG, vacancy, repairs, CapEx and taxes.

Bank 2. I will have to use my cash to pay off the rental property for them to give me a HELOC on it. They are giving me 80% LTV so the total I'll have access to is $145k from the now paid off rental and my primary residence.

With the rental paid off it will cash flow $690 per month.

I’m leaning in one direction but since I’m new to all this I’d appreciate any feedback and opinions from more experienced minds. Thanks in advance everyone.

Thanks everyone, this is amazing advice. I really appreciate you guys taking the time to help out.

@Louis W. Thanks I’ll check these out. This is great.

Can you guys offer some good books for finding off market single family homes. As a first time buyer I don’t want to put all my eggs in one basket with a broker, although I’m certain they are trying their best and will eventually find a property. I’d just like to beat all the bushes I can. At this point I’m just driving for dollars and sending letters. I’d love any book recommendations for more ideas. Thanks everyone in advance.

Thanks everyone for your input. I love this community. @Aaron Porter, thank you, I’ve not heard of this type of structure and this is exactly the type of info I was looking for. I’ll do some research on this. It looks very interesting.

What type of entity would you recommend holding your properties in? LLC, partnership, other? I'll be investing in single family homes and smaller multi family homes. This will be in Oklahoma. Thanks