All Forum Posts by: Justin Phillips

Yikes. I'm glad you're not asking this question personally @Sam Albury! 

@Hayden Bowles Beautiful Home! Nicely done. 

@Kelly McJunkin This style loan definitely isn't for everyone, but it can be a great tool for everyone who qualifies. The average client pays off their home in less than 5 years, without changing any spending habits. That being the case, it's not an interest rate sensitive loan, because the payoff timeline is so compressed. It's really a matter of interest cost that you want to look at.
The only monthly "Payment" you have is the interest only cost. At the current rate, with a balance of $335k, the first month's interest cost would be $1,080.09  That should be the highest interest cost you ever pay, assuming there's monthly cashflow. 

Temecula is a great place to raise a family, I think the market will do very well there long term. East Chula Vista is growing like crazy too. I used to do some work down there, and I was always so impressed by the East Lake Area. 

@Kelly McJunkin Temecula is a great area! I lived there for 10 years, then recently moved to Phoenix. 
We ReFi'd our home in Temecula Valley into a 1st position HELOC, which allows us to keep the property as a rental and access up to 80% of the equity for our next home/future investments. Really the best of both worlds, and a great way to get a feel for the landlord world. I'd definitely recommend exploring that as an option as you look to start your REI journey.

@Elise Marquette Hit the nail on the head.

@Daniele Rosman I’d recommend finding a lender you feel comfortable with, possibly one your agent has trusts. From there, they should be able to provide a number of different options based of rates and closing cost etc.

@Brandon Combs Depending on your plans and timeline, it may make more sense to open a line of credit. That way you only pay for what you use, and you’re not increasing your payment/interest while you’re figuring that out.

Typically better to have more than you “Need” right now, as long as you’re confident you can put it to good use.

@Ximing Feng Let me know what you learn! I often wonder if our proximity to Mexico is an under-utilized advantage.

@Van Ngo I do indeed, I work for a local broker. We only offer one specialized loan designed for investors and clients looking to save interest and utilize equity.

@John Bull Welcome John! This is definitely the place to be if you’re just starting out. The Forums, books and Podcasts will give you a ton of knowledge.

I’d recommend really keying in on what you want to focus on, then jump in full force, weather it’s Florida or Local in SD county.

Depending on your goals (Cashflow vs. flip profit) and situation (financial vs. time investment).

Real Estate is a great vehicle to achieve your financial goals!

@William Coet The interest is deductible if it's for a property or property improvements. 
So if you open a HELOC to purchase another property, I would definitely write that off, as it's really mortgage debt. If you use a HELOC to buy a boat...don't write that off.
Disclaimer: I'm not a CPA, just a huge proponent of HELOCs as a REI tool!