All Forum Posts by: Joe G.

@Danielle Z.

Where do you live?  Where are you investing?  

Thats a lot of equity. Factor the interest rate in your calculations. Interest is deductible and hopefully the HELOC money is a temp solution with a cash out refi on the new property being a long term solution.

I have not heard of a fixed rate HELOC.

Can you cash out REFI your current mortgage? However this would cause your interest rate to increase. A HELOC would be only a temporary increase in rate until you pay it off...a deductible rate increase.

@Robert Tyler

As you move forward with your permit, I recommend Legal Heat app.  Perfect for updated laws.  Small cost, but well worth it.  

@David Valadez @Phillip Lanier@Delwyn Campo

Gents,

Being active duty HAS SO MANY benefits. While I don't live in TX, I am sure any local REI took help form your opinion on strategy. Below are some methods I have used in the past with success:

-VA loans (understand the second use, 2nd teir, and re-establishing eligibility)

-remember BAH is non-taxable income (gross up when speaking to lenders and ALWAYS purchase when you move)

-LLCs are great liability protection, but they are per state (plan on moving to another state?)

-who does your taxes?  (find a great CPA or figure out on your own)

PM for any detailed advice.  I am 16 years into this military/RE thing.  

Keep up the fight.  

@Shaun Morgan

Shaun,

Some generals numbers for you; 2% rule (search the millions of hits on any search engine), Return on Investment (ROI), Cash on Cash return

Come up with a standard for these any other other number you can calculate.  Once you do that you can figure out quickly if a property is a good investment.  

@Daryle Henry Jr

Local REI meetings are the best. Find someone doing the job you want and help them (help is no cost to them). Hopefully they will teach you some methods.

LLCs serve as liability protection.  Sole proprietorship is another business entity.  Do you have a business model?  Can you explain it to someone in a couple mins?  

Keep it up.  

@Nicole Chang

I am doing the HELOC action now. A HELOC is always there and if you plan your investment right...you can pay it off quickly and have available over and over and over.

It may cost you a little to establish (credit pull and small fee), but its worth it.  

@Kevin Tuttle

Leverage affords you opportunity.  Unless you have HELOCs on the free and clear and use that as leverage....

What's your thoughts on keeping all your funds tied up?  

Lenders of all kinds,

IS the following scenario possible; refi-cash out four investment properties, all with lengthly rental history, all in different states (GA, VA, WA, NC), with a current combined LTV of 66% in total?

More detail:

SF VA-57% LTV

SF GA-64% LTV

Townhouse NC-61% LTV

SF WA-79% LTV

Logic,  I want to take as as much equity as I can without refi'ing each loan.  One transaction instead of four.  Conservative total value is $1.1M.   

Any and all recommendations are welcome.  Thanks again BP!

I am looking for any and all advice to my situation;

Primary question is whether or not to refi out of my current VA loan in order to re-establish my VA eligibility for a future purchase or not. If so, what mortgage option to use. Overall intent would be to regain the leverage of a VA loan in a future location/purchase.

Details:

Primary residence, $325K loan, home value est at $45, VA 30 year fixed at 3.75%. I would turn this home into rental when I depart (I am still active duty military and plan to move summer 2017).

Mortgage options with ~95% LTV:

30 year fix at higher rate (with points/fees) increases payment ~$50. I would about break even on rental income vs expenses.

5/5 ARM at about same rate (with points/fees) decrease payment ~$80. I would be positive less than $100 each month.

30 year FHA much lower rate (with point/fees/PMI)

Some concerns:

-paying appraisal fee and home coming in under value

-paying closing costs or rolling into loan, either way adding expenses

Open to your thoughts. Thanks.

joe

@Robert Rein

What was the biggest lesson or most valuable lesson you learned?  How are you using the military to help you invest?  

Welcome to BP.