All Forum Posts by: Account Closed

@Dante M. I would look at both options. Keep in mind that once rates go up a HELOC will also go up. If you take out a new first and know you will use it to purchase another property at least the rate is locked and you don't have to worry about the rates going up on the HELOC

Sean Pour

Let me ask you, have you actually performed any analysis on the property?

If not, your agent certainly hasn’t... Assuming that’s the case, she wouldn’t be in any position to render an opinion.

If you two worked up the numbers, then she would be in a position to say something.

Asking if it’s a “good” investment without any analysis is asking for trouble unless she had already run analysis for another property that was an exact mirror of the one you’re looking at.

Thanks @Brandon your comment was very helpful, and knowing she is a conservative person, I respect her decision. Although I was not planning on holding her responsible for my purchase. I thought no one else is responsible for the purchase because I am the one who is signing the contracts and getting a huge mortgage from the bank. In your experience, who would be the right person for honest advice on RE investments without putting them in trouble?

@Account Closed Yes, I was referring to a "Savings and Loan"

I believe he is referring to a Savings and Loan. A bank.

The bank that gave me the HELOC never asked what the money was for, nor do they care. It's the bank extending the mortgage for 90% of the rental, an S&L, is the one insisting on knowing where the down-payment came from. Their point with them is with the HELOC for the down payment, and with a mortgage on top, the place would be 100% financed. I came through OK with DTI because we had good W2 income.

It's a portfolio loan, so I can't argue with them. And 10% down is a pretty good deal, especially for a rental with everyone else wanting 30% at the time. So I figure if they want to see seasoned funds, so seasoned funds is what they get to see. Also, all they want to see is seasoned funds, but didn't insisted I had to USE those seasoned funds, with the net result the down payment came from the HELOC anyway after all that fuss.