All Forum Posts by: Jeremy Lee

@Long Vang I'm also in the MKE area. Feel free to connect and we can get together sometime!

@Jeremy Mattson welcome! I went to school and graduated at UWO couple years back. Feel free to reach out if you have questions!

Originally posted by @Matt K.:

I guess it depends on what you're trying to do.... but at a high level...

HELOC is basically a credit card backed by your house. If you max it out you can more or less convert it to a long term loan at slightly higher interest rate and probably a shorter term. However, if your dumping money into and then pulling out of it... might make more sense. Catch being, it's tied to the equity in your house. If you don't use it and equity goes down you'll lose access to it.

Mortgage is same thing you already have... long term cheap debt. The catch on this is closing fees, but if you're going to refi and then keep it for a while the costs spread over time won't be bad.

My plan was to use the equity to purchase another rental. So with that in mind, the HELOC seemed more at risk to me unless I got renters in and going right away to offset the HELOC payments. Right?

Originally posted by @Matt K.:

Originally posted by @Jeremy Lee:

Originally posted by @Matt K.:

How long have you been in the property? Also, you're going to have a decent chunk in closing costs.... you could always go the HELOC route too vs cash out.

I've owned since Aug 2016. Don't currently live at property and rent it out. Also, I do have a HELOC on it now, but have not used it. The HELOC was opened up right away before rehab was done and is for 10K

Why not just increase the HELOC... skip some of the closing fees and you can often convert them to longer terms. I did a cash out refi kept some for myself and put rest down on another place... but the closing fees sucked. They are basically the same as any loan, but they add up when you're taking money out and then doing anything loan...

I guess maybe that's where I might need guidance too. Any big differences in doing that HELOC vs Cashout REFI? What are my risks?

Originally posted by @Matt K.:

How long have you been in the property? Also, you're going to have a decent chunk in closing costs.... you could always go the HELOC route too vs cash out.

I've owned since Aug 2016. Don't currently live at property and rent it out. Also, I do have a HELOC on it now, but have not used it. The HELOC was opened up right away before rehab was done and is for 10K

Hello,

I am looking to cash out refi my duplex and use the funds to purchase another property. I have a few concerns and would like to get some input. 

Current mortgage is a FHA loan @ 4%. Current balance of about 90K. Based on comps, my estimated market value is 140-150K. My concern is, what if the appraisal value is not what I expect? Is it something where I just need to do it and see what happens? Can someone show the step by step process for this? Any advice would be appreciated. Thanks!

Appreciate the response folks. Makes sense, find the end goal and work backwards. Something I will need to do!

I started getting into real estate right out of college. Bought a duplex that I’m currently renting out and cash flowing. Living in a single family home now. I want to get the thoughts of other investors on what I could or should be doing to progress and scale up. I have a good income, credit, and ready to do something. Just not sure what’s next. Feel free to Pm me for more questions!

Hey Kyle, I went to UWO and currently live in MKE. Just started my rei journey about 2 years ago. Feel free to reach out!

@James Barnes It's smart in a sense. I met with a few brokers, and they were more looking for someone who wanted to do it full time. I think moving forward, it will be smarter for me to look into discount brokers. Someone who I can just hang my incense under as use it for what I want. As long as I am paying my dues, I should be okay. Also another idea that was brought to my attention was to find a full time agent that you can trust and work with, and when I buy or sell houses through him/her. Ask for a referral fee. This will limit some of the things I want to do (IE: access to MLS, represent myself, etc.), but just another idea/option.

I probably will be looking for that broker who is okay with me just being under them and doing my own thing. Worst case would be to just be licensed, and try to get referral fees for my purchases/sales.