All Forum Posts by: Kenneth Hadinoto

I see how hacking can be off putting for some. However, I'm having a hard time seeing how it's much different from Condo living. Especially if you're able to live virtually rent/mortgage free in a 2,3,or 4 plex. If you currently own the condo out right with no mortgage and you put a tenant in it and house hack a SMF, the only thing I would be worried about is the capital gains on the condo. But alas, this is just what I've picked up from the podcasts and BP books. I'm currently prepping my primary to do the same thing!

Best of Luck!

@Kenneth Hadinoto.....90% cltv combined loan to value ... value x 90% = X ........X - current 1st mtg balance = possible amount of the HELOC

Hi Kenneth -

Welcome to the forum. Well, the biggest con of a HELOC compared to if you were to split funds needed from another investor, would be that it's a second mortgage that you have to pay back. On the other hand, going into a deal with another person will hurt your cash flow by the need to split it. If you do go in on a deal with someone, I would just advise to be 100% positive it's a good partnership.

Personally, (and if you have the flexibility), I like the idea of converting your condo into a rental and purchasing another 1-4 unit owner-occupied property with a 3.5% down FHA loan, or a SFR property with a 5% down Conventional loan. That'll be the option to purchase another investment with the least amount of money.

If you purchase a NOO, you'll need at least 15% down on a SFR (with PMI), or 25% down on a multi-unit.

If you can access enough equity, the numbers work, and you would rather not move, taking out a HELOC isn't a bad move. Just remember it's a variable rate, and HELOC's typically aren't the best to borrower large sums out of or to hold on to long-term.

Hope this helps!

@Kenneth Hadinoto 1) get a HELOC in place on your condo for the maximum amount in case you want to use it....the combined loan to value is likely to be 85% or 90% 2) with the HELOC in place you can then decide on either using it or using the partner approach 3) get fully pre approved before starting to actively look for the next property