All Forum Posts by: Jimmy Mooney

We refinanced our home from a 30-year to a 15-year this past December to take advantage of low rates — we managed to drop our payment and shave off ~12 years from our original mortgage (we originally purchased this home in 2017 and the area has appreciated considerably since them), so we have a fairly recent appraisal. We're at like 60% LTV currently, so we have some headroom for that HELOC.

Aha, all good points, thanks Tyler. I wasn't aware of the HELOC/Primary residence requirement, which is why I was asking for advice here! :)

Seems like I may need to lower my price target to find something I can truly finance as an investment property so I'm not relying on FHA loans. It pretty drastically limits my options in the northeast, but I can still analyze markets and see if I can make it work. I'm sure there are houses out there!

My plan for paying off the initial HELOC investment would be using part of the cashflow from the purchased property, or doing a refi on the purchased property once I've seasoned it with rental income.

Thanks again.

How is this any different than a cash-out refinance or other equity-taking measures to fund the purchase of a property? How else would one without a large bank account fund the down payment of a property?

I'm considering buying my first investment property using a HELOC on my primary residence. I have enough equity in my primary residence to cover about 4-5% of the purchase price of the target property. I was thinking of moving into one of the units in the target property and using FHA financing to purchase, so I could take advantage of their lower down payment (I'm pretty sure FHA won't finance an investment property). Live in it for a year, and go back to my original primary (or, rent out my original primary residence).

Has anyone used a HELOC to finance the purchase of an investment property for the down payment, and used it for an FHA loan, and know if this is a sound strategy? The cash flows are good on the target property (it's a 3 unit — 3/2, 1/1, 1/1) with established renters in the smaller units and owner-occupied larger unit so I'm confident on annual returns (about ~7-8%).

Thanks for the advice!

This may not be NYS specific, but I'm looking to invest here so I've been going to the auctions at the Brooklyn courthouse.

My question is: When you buy a property at the courthouse auction, the paperwork talks about a mortgage balance, judgement, tax lien, etc. Do you have to satisfy these debts in addition to the auction price, or are you essentially buying a 'clean' property if the state is auctioning it?

Followup question: Can there be title issues with these types of property or is the state essentially selling it with a clean bill of health?

Last question: You have to give 10% down in cash or check at the courthouse. Can the final 90% be financed through traditional financing? Does it change depending on if it's your primary residence or investment home?

Thanks!

What do you plan on doing with the large commercial? And care to share numbers on that 4000sf victorian? What you plan to put in and what you plan to rent it for?

Rent only needs to carry the refi. I pay the LOC off with the refi and only use the LOC again on the next deal.

I don't think a lender would care about 100K LOC with a conv. loan in the 100K range - but I haven't actually done this. They easily lend more than that to individuals every day!

Love it - it's all coming together.

Thanks Stephen! It was a pain finding deals and having to keep looking because they're cash-only.

I may be totally off my rocker here and these LOC's may not exist. Tell me if so.

LOC can be obtained from a bank. I've heard of up to $100K LOC being available with a personal guarantor with good credit unsecured. I could pull half that out of credit cards I have today with zero balances, but the rates there are atrocious.