All Forum Posts by: Joseph Turner

@Jonathan Taylor Thanks for the clarification. The HELOC/DSCR combo seems like it could be a viable short-term option assuming it could be rolled into a conventional. Are you aware of any pitfalls or "red flags" an investor should be aware of that might prevent qualifying for a conventional in this scenario?

Thanks, that's great info to keep in mind re: the seasoning period of HELOC funds in relation to borrowed funds of DSCR! (I'm still learning about those as well.)

Re: the 90 day seasoning period of DSCR loans, do you mean they can be refinanced after that period? If so, wouldn't most conventional lenders want to see a longer history of rental income to qualify?

@Conner Olsen Thanks for the input. I have heard David Greene mention that as well in some podcasts. Ideally, I'd like to pay back the HELOC in under 2 years after draw. But I'd also like something a bit less intensive than a BRRRR to build confidence in my first deal, even if the cashflow is mediocre. Hoping to get new ideas of HELOC strategies.

@Travis Biziorek Yes, I'd love to connect and chat more in depth about the strategy you used!

I'm looking into acquiring my first HELOC on my California rental for OOS cashflow investing but struggling to come up with viable exit strategies to get out from under the HELOC and essentially rinse and repeat. The only method that really comes to mind is BRRRR, which I am not opposed to, but would prefer something a little simpler for a first time deal.

Similarly, I'm making an assumption that it might be possible to use a combination of HELOC and DSCR loans on something a bit more turnkey for the initial purchase and then refi into conventional after a year or two rental income?

I'm sure there are other strategies available and would greatly appreciate all insight others are using to pay off and reuse their HELOCs.

I am currently in the process of exploring options for my first HELOC (that also happens to be a rental) using TransUnited at 70% LTV, which seems quite reasonable for a rental. I found them here on BP under Network tab > Mortgage Lenders.

However, I haven't pulled the trigger on anything as I'm still educating myself on the exit strategies of using a HELOC (and will probably create a separate post for that subject).

Hope this helps get the ball rolling. 

Thank you all for the feedback!  Those are all very solid points to consider, especially when exploring a new market.  I do think single-family might be the safest way to get started.

I'm looking to make my first investment purchase in the Cleveland, Ohio area and having difficulty deciding to focus on either a single- or multi-family property.

My original thought was to focus on single-family due to more familiarity and my understanding that it would most likely attract a longer-term tenant with hopefully less headache.  However, after analyzing multiple properties in the area, it seems that multi-family more easily meets or exceeds the 1% rule (of thumb) and would thus probably bring more cashflow.

I would much prefer to have a stable long-term tenant than to have yearly turn-over but am trying to get a better feel for the opportunity cost difference between the two types of housing.  Does the additional cashflow of multi-family outweigh the headache, etc?

Thank so much for any feedback and experience!

Thank you so much Drew!  That article is very insightful.

I am very much aware of James Wise.  I have visited his website and watched many of his videos; he seems like a master of his domain and a one-stop-shop for investors.  I am seriously debating (tempted) on trying to enlist his expertise.

However, my original intent behind the post was to see what others are doing and explore all options since I wasn't satisfied with my Google search results.

I very much appreciate everyone's feedback!  This community is awesome!

Thank you so much, Uri! I will certainly look into him.