All Forum Posts by: Lee Kozokas

@Lana Lee My problem stemmed from trying to get equity out of 3 of my properties.  Apparently it's hard to find a bank will do to HELOCs for investment property, especially if you want to "bundle." Though I did find 2 banks willing and I just started my research this morning. Home values are really low where I am investing, which is why I would only get $130K equity out of 3 separate properties. I wouldn't be able to do much with a HELOC on 1. Thanks!!!

@Bob Green Bob, thanks for the reply! Wow... I never even heard of that, just did a quick search and it looks like a much better option than a HELOC so far. More research to come.

Any more insight on this? I would like to grow as fast I responsibility can, been at it since 2011 and obviously I have been missing something. Thanks again!

@Lana Lee Thank you! Great tip. Unfortunately everyone I speak to knows it's for investment out the gate as soon I provide them with more than one property, followed by them asking my address (I'm away from the properties, renting, due to work) Thanks again! :)

 yes, you're right, thanks

Hello Everyone!

I have a few properties which collectively appraise around $230K, with $42K of associated debt. 

I would like to obtain more properties. I have done some research and I am lean towards a HELOC on all the properties to unlock ~$140K (230-42*.75) for doing this. A HELOC will give me the flexibility of having cash for repairs, negotiation, ect.

If there is a better financing option PLEASE enlightenment me. 

Also, does anyone have any recent experience with a bank offering HELOCs/HELs? Any suggestions?

Thank you for the look!

-Lee 

Hello Everyone! 

Thanks in advance for the read and/or advice. I have been trying to figure out the questions below both on my own through research and also by contacting some advising firms but haven't came to a conclusion yet, so I thought why not put my problem out on BiggerPockets to get a few different opinions. 

Essentially, I am seeking some direction on what I should do moving forward. My intent is to continue to grow my real estate investing portfolio. I started in 2011 with a single duplex, and have since grew the business to a total of 5 properties, 9 total units. These consist of 4 duplexes and 1 single family. The duplexes are located in PA, the single family is in MS, though, my focus for this post is on the PA properties, as I intent to expand in that market. I purchased the homes not in the best condition (purchase price ~$35K per house, 2 units, on average) and have done most of the remodeling myself to keep costs down. 

Debt wise, I currently have 1 mortgage (~$27K balance), 1 commercial loan (approx ~$42K balance), an unsecured loan ($13K balance), followed by some credit card debit totaling ~$15K. No worries with the interest rate on the cards and unsecure loan, the highest interest I pay across the board for all my debt is 4.65%.  

I am also an active duty Air Force member, so I have a property manager as I am outside the state. I would like to continue to grow my business, I am just not sure what the best option is. Should I continue to buy duplexes or should I try to get financing for an apartment building, or go commercial? Additionally, since I do not have much financing on these properties, I am having to claim significant gains on my taxes, which leads me to wonder about picking up an investment requiring larger financing (I'm also seeking a CPA). Which then leads into another problem, I currently operate these properties under my name. I have recently revisited the possibility of LLC formation and I am open to thoughts on that as well. In the past, my property and umbrella insurance has provided enough piece of mind for me, though if I am overlooking some other major benefit of the LLC verses the cons, I will reconsider.

I feel like I have a decent system in place, but after stepping back and forming the above questions, I realize I definitely have some past due work on my plate to maximize efficiency and continue growth. Any constructive criticism is appreciated! If any further info is needed, feel free to ask!

Thanks again!

- Lee