All Forum Posts by: Jesse Chambers

@Corby Goade thanks for your help. It seems I need to do some mapping and strategizing then on how to pay off the HELOC being it's a variable rate. Do you have any tips in that regard?

Would you buy another property cash with the HELOC and then refinance the cash property, and use those funds to pay off the HELOC?

I’m still working to learn the house hacks and various options available to me to increase my units and passive income.

@Peter T. Thanks for the info I’ll be getting on the phones soon to see what I can discover

@Dave DeMarco thanks so much for your advice, it seems I need to do some goal setting, and evaluating the end game. I did have a question regarding paying off the HELOC with the next property...so are you saying you buy a property cash with the HELOC money, so it's paid in full. Then do you refinance that house and use that money to pay off the HELOC?

I am realizing I’m very green to the use of debt to increase my passive income. I’ve just always been a frugal saver and used that money, but now looking at it I’m beginning to realize there is potential for much more.

@Dave DeMarco thanks for the advice, so I guess I still am partially confused on the difference between the HELOC & Refinance that it would impact your ability to purchase 3 additional homes via HELOC. Is it because it costs less to HELOC? Or is it related to the way a HELOC is viewed vs the way a Refinance is viewed to potential future lenders?

My situation is I have 2 houses I purchased in 2011 one FHA for $95K and one with 20% down for $88K. I'd say the $95k property is worth 225K according to Zillow and I owe $73K on the mortgage. Have rented it for the last 8 years and it's a great property. The other I remodeled and live in, worth $250K-$275K I would guess, but I only owe $53K on that one.

In that situation would you try and HELOC the investment property first or both or how would you approach it? I'm working to understand the benefits of doing so, but also the long term impacts as I plan to rent out the home I live in eventually, but not sure of the best approach.

@Svyatoslav Popach ya I had the same issue trying to get a HELOC last year on my rental and gave up...probably going to pursue it again

@Andrew Postell thank you for the details I will talk things over with my wife so we can make an educated decision on the matter.

Thanks everyone sorry for the delayed response I am new to the site and couldn't find my post to view replies. I will definitely take the advice I'm going to look into a HELOC on my rental at a local credit union. I tried a few places and they wouldn't do it on an investment property.

I also have a home I purchased for $80K in 2011 that I live in that is currently valued around $250k that I only owe $53K on.  I’m considering trying to get as much cash as I can, but would prefer to wait for a dip in the market with all the economic indicators signaling a potential shift.  

Granted I’ve been thinking the stock market and real estate market has been overvalued for some time, and it keeps rising so maybe I’m incorrect.  Just trying to prepare so I can gobble up some more investment properties when/if lending becomes more scarce and inventory becomes plentiful.

I have a rental I’ve owned since 2011, it’s appreciated significantly and I currently never plan to sell it, but I’d like to capitalize on the equity in the home without selling it, so I could possibly possible use those funds to purchase another rental. How do you go about that, or is that a bad idea?

@Daniel Hyman I’m gonna give it a look thanks! I’ve just always collected checks but going to give it a look. Do they charge any collection fees? I know at my car lot we use a credit card machine for payments and it’s 2.7% fee per transaction