All Forum Posts by: Jay Smith

Quote from @David Garner:

Hey Jay

Firstly, congrats on finding the deal. I'm assuming 18% is the gross yield?

Without more info it's difficult to say what I'd do personally. Where you pull funds from for your deposit will.depend on a lot of factors, including the deal, your wider circumstances, your plan, and your attitude/tolerance for risk.

Seems to me based on the info you did provide that you do have some options on the table to choose from already. You could wait to sell your flip amd then 1031 into the rental, but the rental.might well be gone by then, amd you might not make the 80k you think you will... lots of uncertainty there.

The HELOC might well be your cheapest and most easily accessible option.

My only real piece of advice is, don't get so caught up in the funding part that you neglect your DD on the rental. I've been blinded by big headline numbers before and got so excited about trying to get the deal done somehow that I ended up buying a real dog with lots of issues.

Good luck, and I hope you get it figured out.

DG

Thanks so much for your advise! I do need to do more research on the STR. I think I’m going to wait until I sell the flip as the HELOC might have other use at a later time if I want to use those funds to help get a second STR.

Typo “thank you for your response” lol

Haunt you for your response. Yes it would allow no interest, but I was looking at the timing. The flip downs have a buyers contract yet so we looking at another 45 days..I wanted to get started asap with the STR, but perhaps slowing down and waiting for the flip to get sold would be best to save on interest. Cash flow is tight as I put a lot into the flip, but the flip will yield $80k return, of which $50k will be actual profit.

Thank you! Yes it's o my been a year. About $150k equity but the HELOC I'm sure it's only 70%LTV so I won't get much out, but it's still enough to do down payment on my STR

Thanks so much! And after do you think I should sell the primary or keep it so I can do the help call over again. I was thinking about downsizing since I'm a contractor I could buy a house that needs work and just live in it to cut my overall cost, and focus on my STR's. I usually do flips but slowing down there and focusing on STR's in state and out.

Hello there BP family. I read, I watch and I learn a lot from the resources both on this platform and at meet ups. However, I need advice badly! I have a question about how to be creative with this situation. I want to purchase a turn key STR for sale already income producing at 18%. Using DSCR. My capital is low right now but I need $50k for my portion of down payment and have a few options to obtain the funds. First, I can pull out money from a primary residence on a HELOC (only small amount available $50k available), cash out refinance, or just wait until my flip sells ($80k profit won't be sold until end April) and use proceeds to do STR, or use both resourced so I will have additional money to maybe even buy a 2nd STR. Any advise or additional suggestions is greatly appreciated!!

Hello there BP family. I read, I watch and I learn a lot from the resources both on this platform and at meet ups. However, I need advice badly! I have a question about how to be creative with this situation. I want to purchase a turn key STR for sale already income producing at 18%. Using DSCR. My capital is low right now but I need $50k for my portion of down payment and have a few options to obtain the funds. First, I can pull out money from a primary residence on a HELOC (only small amount available $50k available), cash out refinance, or just wait until my flip sells ($80k profit won't be sold until end April) and use proceeds to do STR, or use both resourced so I will have additional money to maybe even buy a 2nd STR. Any advise or additional suggestions is greatly appreciated!!

Hello there BP family. I read, I watch and I learn a lot from the resources both on this platform and at meet ups. However, I need advice badly! I have a question about how to be creative with this situation I'm in. I want to purchase a turn key STR for sale, that is already income producing at 18%need $50k for my portion of down payment, and have a few options to obtain the funds. First I can pull out money from a primary residence on a HELOC, (only small amount available $50k available), cash out refinance, or just wait until my flip sells ($80k profit) and take proceeds to do STR, or both scenarios so I will have additional money to maybe even buy a 2nd STR. Any advise or additional suggestions is greatly appreciated!!