All Forum Posts by: Jordan Coates

I have a property that I'm flipping and I have some general "handyman" type of work.  It would probably be a few small jobs.  I'm in Smithfield, NC.  Does anybody in the Raleigh, NC real estate forum have contact with anybody like this in Johnston County?  Thanks!

I'm worried about over-leveraging myself on my properties. My wife and I have our primary residence and a rental property (that we have owned for about 4 months). I'm thinking about using $20K of the $80k equity in my primary residence to buy another buy and hold SFR rental. I'm also about 2 months away from being able to use the equity of our current rental house for a down payment on another SFR rental.

My wife and I make enough from our W-2 employment to make the mortgage payments if the rentals go vacant.  What are the dangers of using the equity for down payments on other properties? Can we just keep doing this?

Lending Club is the one that I'm familiar with.  I live in NC so I can't be an investor (some states do not allow it) but it's an interesting way to make a little bit of money.  You also choose your risk level.

A HELOC could give you the option for interest-only payments for a period of time (depending on the terms of the HELOC). You will also be paying interest only on what you use. With a Cash Out Refi you will be paying interest (as you pay it back) whether or not you are using the money.

Hope this helps.

Thanks for all of the information!  

This is one of the reasons I love BP: I asked a question a couple of hours ago and in that time have received multiple responses from experienced investors.  What a great resource!

If you are in an area that you aren't planning to stay, you might want to look at some of the peer lending sites to get a (fairly) quick return on your money.  When you get to your new home, look for a cheap duplex or a single family home that you can get at a good deal.  Turn it into a rental, refi after 6 months (getting the cash out) and do it all over again!

My wife and I are new investors with one single family rental in our "portfolio".  In my area there are a lot of $80,000 or so homes that can be bought to rent at $800-$900 per month.  The cash flow on these deals (when turned into rentals) is pretty good ($300-$400) per month and I'd buy them all if I could.

I just don't have the money for another down payment at the moment. Is it wise to use my home equity line of credit for down payments on these houses? I owe about $80,000 on my home which is worth about $180,000. My home equity line is about $60,000 with interest-only payments set up for 15 years (same term as my mortgage). The APR is 2.79% until March 2018 and then it will go to 4% or so.

We should be able to qualify for a couple more mortgages based on our income so let's assume that getting approved for the mortgages won't be an issue.

Am I being crazy to think about paying interest only payments on my HELOC to take advantage of these deals?

Thanks for the help

Thanks for the information everyone!

Mostly around the Smithfield/Clayton area but I would be interested in the Garner or possibly Raleigh area for the right deal.  

Is there some service that can provide contact information (name, address) of folks who are currently a 2-3 months late on their mortgage or possibly in a pre-foreclosure situation?  This seems like it would make a good direct mail list.  

What are some other sources for direct mail addresses/campaigns?