All Forum Posts by: Jordan Wood

@Jason Coleman @Robert Phillips, would any of the options that either of you cycle through venture over to Winston Salem? 

Welcome to BP from a fellow NC'er. Give this book a quick read if you haven't seen it yet. It gives a good 30,000 ft view of creative financing strategies that can be pursued. 

Book

Good luck!

If you've already closed the mortgage on your current home, I don't think you'll have any issues. For owner occupied conventional loans in NC, 12 months is usually the requirement to owner occupy the new residence. As long as you reside in the new house for 12 months, it shouldn't matter how many other properties are in your name.

However, the owner occupied contingency is not just leaving one of the rooms vacant and changing your address. You are supposed to legally have the intent of actually living there for the 12 months. If you plan to stay in your current house, I suggest looking into non owner occupied financing. 

@Daniel Johnson Thanks for putting this together. 

I have been looking for people to connect with in the Winston area but up until now, I have only been able to find activity in the Raleigh/Charlotte areas. Glad to see the ball rolling in the Triad... looking forward to attending. 

I know this has been discussed time and time again in terms of using your own primary residence HELOC to finance the down payment on an investment property... but what if the HELOC belongs to someone else? Family member, private lender, etc. Would that line of credit show up in my name or theirs?

There are a few posts about this strategy, but there are lots of unanswered questions about the tax implications of using "gifted/borrowed" money to finance an investment property. 

Some of the suggestions are to have the funds sent to an LLC before purchasing a property, but it is my understanding that a HELOC is like a revolving credit card account, access to a credit line to use as needed. In other words, it's not an actual check being deposited into my checking account (or to an LLC), so I'm not sure I understand these "gifting" questions. Can someone help clear this up for me?

Good morning, 

I have been familiar with BP for about a year now, but I thought it was time I jump in here and start becoming a little more active in hopes of accelerating my investment journey. There is such a fine line between being prepared for my first deal and getting stuck in the analysis paralysis mode and I’m doing my best to skate that line. I am actively reading as many books and listening to as many podcasts as I can in my spare time, but at the end of the day, I think I have to jump in and start learning some hands-on experience in the investment world.

I think I'm ready to complete my first purchase(s) and I was hoping you guys could give me some feedback on a few things that are holding me back. For some background info, I'm 26 with a steady engineering W2, low DTI, and good credit score. My goals are to acquire at least 2 small multi-family properties in the Triad NC within the next 6-12 months. Whether they are 2, 3, or 4 units, I would like one of the properties to be strictly an investment property, and the other would be a live-in house hack with an FHA loan.

1) In terms of financing, I only have enough capital/reserves for 1 property, but I'm in the process of getting an angel investor to grant me access to a HELOC. From what I have seen in the forums so far, it appears using the HELOC to finance the down payment of a property is best suited for either flips or BRRR deals. Essentially, I want to treat the HELOC like hard money, but the timeline/payback period would be more forgiving. In terms of the logistics of acquiring 2 properties, do you think it makes sense to use my own capital to fund the FHA owner occupied house hack, and then use the HELOC to fund the down payment on the 2nd investment property? The other option would be to skip the FHA to avoid the PMI and use the HELOC to finance the down payment on 2 conventional loans and save my own capital as reserves for problems/renovations. Since I would be owner occupying one of the units, I'm not sure if I would be able to flip/refi the second property for enough to pay back the HELOC.

2) With the market in its current condition, finding a suitable deal(s) won’t be easy, but if it was easy, everyone would be doing it I suppose. Should I be concerned at all with purchasing rental properties right now with so many people being unable to evict non-paying tenants? Part of me wants to wait for it to blow over, but the other half of me knows I must start somewhere, or I’ll never make any forward progress.

Sorry for the long post. Hope you guys can provide me with some valuable insight.

Thanks.