All Forum Posts by: Jason Zullo

we have a joint and she has an old personal account, and she got pre qualified through the same bank as I have the heloc with. Its a local credit union but do you think it would be wise to open up another account at a different bank? 

 yes I'm also looking to do this, I would love to hear updates

a few other things.

Heloc and primary residence is in my name solely. new property would be in her name.

Hey guys I recently got a heloc for 55k @ 3.5% we also got my wife pre approved for a mortgage to purchase an investment home we plan on holding. We currently keep about 4-5k monthly in our account. I know the bank is going to want to see reserves and closing costs in the account when buying the home. We haven't found anything yet but would it be smart to transfer maybe 20-25k into the account? I think i read if its in there for two months they don't want any history on it. I think if I'm correct it will only cost me $73 a month worth of interest to keep it in there in the meantime. 

Either way is my plan is to pay down the heloc as quickly as possible using any cash flow from the property and  some monthly cash we have recently freed up. So would drawing the money at this point be worth it?

 He paid cash for the home in the first place so he used the refi to get his cash out and buy another house and he will probably do the same with the newer one and keep his money working for him and his tenants paying for the properties. 

 Hey thanks for the recommendation Christopher I will definitely check him out.

Hey Chris Im from long island also. Also looking to generate income to finance a buy and hold retirement lol. Send me a message maybe we can help each other out in some way.

Jason

 I did use the calculator, I did not add any vacancy or repairs or capex, the rest I did include though. Like I said the cash flow now while the house is being paid off would be great but its not my main goal, I don't know if my thinking that way is correct though. being if Im tying up all that money in the house if I should expect more cashflow.

knowing what I know from my house and what I rent the apartment for and what I could get for the rest of the house and what my expenses are I don't think $800 a month is out of the question though.

also I should add that to me having it be right around the corner from my current house and knowing the area are big plusses for me. And this is the exact same house as mine so I know it inside and out. Also over the years since Ive lived here this particular house I'm looking at has been listed for sale a few times but never sold so I'm assuming the current owners are having some type of issue paying so I don't know if that helps me any. 

So as I stated in earlier posts Im looking to secure my retirement by purchasing enough rental properties to allow me to live of the cash flow once they are paid off (any positive cash flow in the meantime would be re-invested)

So browsing this morning I came across a property one block over from my house for sale.  It got me thinking. So without knowing all the details but basing the ones I didn't know on my house (exact same house) I came up with these figures running it through the BP calculator.

This is all assuming I could get the house for a good price of around 185,000 (asking 199,000 and I paid 190 for mine about 6 years ago in better condition so may be able to get it for less) a little rehabbing (10k worth) would probably be worth around (210-220 conservatively)

If I went the traditional route

Purchase Closing Costs:$10,000.00
Estimated Repairs:$10,000.00
Total Project Cost:$205,000.00
After Repair Value:$215,000.00
Down Payment:$37,000.00
Loan Amount:$148,000.00
Loan Points:$2,960.00
Loan Fees:Amortized Over:15 years
Loan Interest Rate:4.000%
Monthly P&I:$1,094.74
Total Cash Needed

By Borrower:$57,000.00

I know with renting my basement apartment for $1300 and what I could rent the rest of the house for I could probably get about $3,000 in rent from the house.

The calculator put the cash flow around $800 per month (honestly that would be great but Id consider it a bonus because my goal is in the long run when its paid off to collect the rents for retirement and would probably use any cashflow in the meantime to re-invest in something else)

so here is what I have in terms of funds

roughly $10,000 cash

50-70k in equity in my home (based on what it would appraise for 210-240 owe 160)

my thoughts were pull the equity out of my home for the down payment and maybe enough for any repairs. Then use my cash for closing costs and just bank any cashflow to build those saving up again. This is all based on if I could even get a mortgage for the house.

Im sure I left out details but would you seasoned investors buy this as a buy and hold and if you would how would you go about it if you were me?