All Forum Posts by: Keith Angell

That is absolutely not the case. You can view homes with the help of a buyer's agent without any down payment required. It sounds like the agent you worked with may not have been acting in your best interest, and I would strongly recommend finding another agent. A trustworthy agent should make the process clear and help you see the properties you're interested in without unnecessary obstacles.

@Daniel Tanasa

Thank you for the congratulations and for sharing your perspective—it’s much appreciated!

I was considering taking out a $240K HELOC with a 10-year draw period and pulling $160K from it to build the next rental property. My plan is to funnel the rental incomes from all three properties, along with my W2 income, back into the HELOC while covering all expenses from it as well. Based on this strategy, it would only take about 2.5 years to pay off the $160K. My thoughts were that this would be a short-term solution.

However, the more I think about it, I’m starting to lean toward a cash-out refinance over 25 years, with a minimum payment structure. This would allow me to stockpile rental income until I’m ready for the next investment, giving me more flexibility in the long run.

Thanks again for your insight

@Jaron Walling I appreciate the response! I’m still working the 9-5 but have the long-term goal of retiring in 10-12 years. I’d like to have 3 single-family homes and the 5-plex paid off by then, which would give me some solid passive income. My wife and I are also moving overseas when we retire and will add our home to the rental pool. 

I have the 5-plex plans. I haven’t gotten bids yet (build is too far away), but I’m hoping to keep it under $300K by subbing out the work myself.

I’m not a huge Dave Ramsey fan, but I do lean toward being conservative and avoiding too much debt.

I like the idea of using a 15-year loan for the best rate, especially since I'm aiming for long-term stability. I hear you on the HELOC for short-term lending and refinancing. I'll keep that in mind for the next build, especially with rates where they are now. You're right about the value of leveraging equity strategically.

I’m excited about the progress so far, and hopefully, we both keep crushing it with our investment goals! Good luck with getting your first rental property paid off! Keep me posted on how it goes. Cheers!

Hello everyone,

I’m looking for some advice as I plan the next steps in my real estate investments. Here’s a bit of background on my current situation:

• I own one rental property that generates $1,900 per month in rental income, and it is paid off ($300K).
• My primary residence is also paid off ($288K).
• I’m currently building another rental property with cash ($200K). Rental should be $1,600 a month.

This year, I plan to build one more rental property, and it will require financing. It will be an identical home to the one I’m currently building, and I expect to need no more than $160K in financing.

I’m not looking to overextend myself by taking on too much debt, but I want to make sure I’m approaching this in the right way. 

My question: Is using a HELOC the best option, or should I consider refinancing my home for a 25-year term and putting all my rental income toward it? With my rentals generating around $46K net annually, I'm hesitant to take on a long-term loan just to keep payments lower, so I'm leaning towards a HELOC. Am I on the right track with this approach?

I’d really appreciate any insights or suggestions!

Thanks in advance!

I know you need to qualify for each one for full deductions; Real Estate Professional
Hours and Materially Participating Hours. My question is, can you count some of the same activities under each. 

Example: 

I draft a new lease for my rental and it takes me 1.5 hours. Can I claim 1.5 hours for my real estate professional hours, and also use the 1.5 hours as part of my materially participating hours?