All Forum Posts by: Lance Foster

I am looking to connect with awesome realtors, lenders, property managers and builders in either the Knoxville or Chattanooga markets. I am a contractor/investor just outside of Portland, OR and my wife and I are looking to buy in these markets with the intent to move within the next couple of years. 

I have done a lot of research on the Chattanooga area and have some areas that I am starting to hone in on but would like some more local knowledge as well and just starting to look into Knoxville. We are planning on taking a trip to both markets in the next couple of months to take a look around and potentially meet up with people we may be working with.

@Justin Frank what property manager do you use? I almost went through with a SFH but ended up getting a duplex in Pendleton. Klamath still interests me though.

@Shaun Weekes I get what you’re saying about the heloc and I think the biggest thing our friend was trying to say is that paying the interest even for 5 years then say do a cash out refi on the rental property to pay off the heloc if we had not already would be cheaper than paying for a complete refi. I’m new to this and am hearing completely contradicting things from friends who are in the industry. At this point it almost seems like what friend do I trust most.

I do like the fact that I know what my payments will be with the refi however, there is no unknowns

My wife and I are looking into a couple of different options to fund our first rental property. Originally we were looking to do a cash out refi on our house to get money for the down payment on the rental of 25%. Ideally we would need about 50k out of the house for the market that we are looking into. Currently we own 175k on the house and a conservative value would be 270k. With those numbers we would get about 35k but I think the house would appraise for more potentially getting up to 50k. Rates have been quoted between 4.5% and 5.2% with about $3500 in closing costs.

I had one loan officer that was a friend tell me that I should get a heloc instead of refinancing because even with the higher variable rate I will still be saving for the little amount that we are pulling out over the closing costs of a refi.

I also had another loan officer tell me that was a terrible idea because the rates are going to go through the roof and I’m going to pay more in the long run on a heloc that he has one and wished he never got it.

Just looking for some advice as to what will save the most in the long run. We ideally would have the heloc paid off in 5 years.