All Forum Posts by: Joseph M.

@Joel Gierbolini you never gave additional information on the property you are trying to purchase. If you are attempting to do the BRRR strategy I take it you are looking to move soon? If so, have you looked at how much you will be getting for rental income for your current residence? I have used my HELOC three times to purchase rental properties (along with my retirement account - TSP). Your DTI can also be reduced if you were getting rental income to offset your debt/mortgage. As far as numbers, how much are you looking to borrow - next purchase? Is it substantially more then the place you live now? If you are doing a BRRR your down payment shouldn't be as much as if you were purchasing a rental property (which lenders want around 20% or more). Conventional loans require less and you will have to "live" in the home and call it your primary residence.

Thanks Melanie, this was another great meetup!! The information was very useful for commercial properties and multifamily rentals.

Sorry I missed the last one!!

Hi Jeff,

A few questions? Did you shop around for your HELOC? Some smaller credit unions and banks will offer up to 85 percent LTV instead of 70. I think you have more than enough to get started in REI but you probably want to continue reading and doing your due diligence before you jump right in. Other question is, what about doing a self-directed IRA which you can loan out money at a set interest rate to other investors? There's also peer to peer lending if you are an accredited investor (someone with a net worth over 200k) like proser and lending one. By investing in Florida do you ever intend on checking on your property frequently on just once/twice a year? You could possibly combine the brokerage account/cash account and the retirement account to see if you get better returns in RE.

I think you might be moving a little too fast and probably should sharpen your skills a newbie landlord. Are you part of a local real estate investment group and do you have a mentor? Are you currently renting out rooms in the house you are living in now? I purchased my first house using a VA loan and have owned it over 10 years so I am familiar with the process. Another thing you might want to look into is the new VA loan 203k loan program they started, which will allow you to purchase a home that needs repair and fix it up. You stated you are making double payments on your mortgage, but didn't say you are living rent free since you are renting out rooms (possibly Airbnb), is that an option? What is your current debt to credit ratio? Can you afford another mortgage? So to answer your question, you need to provide more information. What kind of return are you looking for? Anyone telling you to do one or the other can't possibly be giving you good advice if they don't know your full financial picture. What's good for them might not be good for you and vice versa.

@Melanie McDaniel

Melanie please thank Karen again for the excellent information. I feel we should probably take her to lunch for spending time with us. She really went into detail and explained everything so clearly. Ill send her a text tomorrow thanking her as well. It would be interesting to see what a contractor would quote on the exact same house (rehab repair estimate) .

From: Melanie McDaniel (Organizer)

Hello everyone! Just a reminder that we have our next networking event next Saturday, November 4th! It will be at 10:00 but location is TBD. I will find a property currently on the market, and local investor Karen Downs is going to walk us through how she estimates rehab costs for wholesaling. She has local knowledge of materials/labor costs, what the inspectors are sticky on, and she is going to share the form she uses to capture all the data. I will announce the location Friday! It should be in Ocean View or close by. Look in the most recent even thread for the location, or write me here to get the address. See you there, wherever it may be!

http://melaniemcdanielrealtor.com | VA Agent # 0225230400

These look really good, you all did an excellent job. They're furnished like an Airbnb property, have you thought about that option as well? The cabinets look great and I like the colors you went with. How much did you purchase them for and how much work went into fixing them up? Can you post before and after pictures? How long did it take to complete the renovations since you decided to do most of the work yourselves?