All Forum Posts by: Derek Brickley

The benefit to a HELOC is that you only make payments on the equity you use. Similar to a credit card, say you have 60k available in a HELOC but you only use 40k, you don't make payments or pay interest on the 60k you have available, only on the 40k that you used. So for that reason trying to get the max amount as a HELOC limit gives you more access to your equity, but doesn't necessarily mean you are going to have to pay more to get that. As I believe was mentioned above, you are qualified for a HELOC based on the interest-only payments. Now eventually you will want to pay it off, but the minimum required payments are interest only.

Hi Sebastian!

A few people have responded about the PMI and I absolutely would agree with them. As a househack and starting your real estate journey, ask yourself if you are seeking cashflow or appreciation. If your main goal is to decrease your monthly expenses, then if you have the extra money to buy it out that would be the best way to do so. If you don't mind paying more each month, you could put that money elsewhere and maybe make more from it! I would say it is important to consider the opportunity cost of your choices and look over your goals.

With respect to the downpayment, I think again weighing your goals is important. The best bet is to probably discuss this with a loan officer who (hopefully) can give you more information about the exact costs. I'm not sure what your local market (Reston, Sterling, Herndon) is like, but certain markets are in a position where they may see housing prices decrease in the coming months. Putting 10% down may give you more of a cushion against this and again (if your goal is cashflow) you would have a lower payment all around with your PITI and PMI. On the otherhand, putting 5% down frees up more of your capital for other investments (perhaps adding the ADU) which would generate more income in the long run.

So no straightforward answer, but I would strongly reflect on your goals and your willingness to accept risk and decide with those in mind!

@Shiloh Lundahl that’s great info for sure! Is this home in the beach a new construction or an existing home?  Also, where did you find financing available?  

I totally agree, I have never been bored in Costa Rica (my profile pic is my girlfriend and I surfing in Nosara) and I really like your perspective!

I would already like to give a huge thanks to those who have responded!! Great insights.  And yes, I will admit “attractiveness” was not a great word, but really I am looking to see if it has helped with efficiency and benefited the owner/management!

So much great advice already!

I am currently debating whether smart home updates will increase the attractiveness of a beachfront STR. This article by Stayfi includes a few recommendations for STRs, but is a little outdated. Here are some of the major categories covered in this article:

Best Smart Home Tech For Vacation Rentals
Noise Monitoring
Smart Locks (Keyless Entry)
Smart Thermostat
Home Security
Digital House Guide

What smart tech is a must-have for STRs, what is an add-on bonus, and what should just be forgotten altogether?

Thank you in advance!

Also great areas of CR are Guanacaste Region, Playa Flamingo and Playa Grande are amazing.  Then Nosara was a lovely trip as well.

To my knowledge, the problem with investing in Costa Rica is that there is no financing available. The only way to purchase property (for a STR) is through cash. Does anyone else know of financing options there?