All Forum Posts by: Marcus Hill

Quote from @Justin Cothran:

@Marcus Hill

Same position here. Did you ever find a solution for a 3rd position heloc?

Thanks in advance.

No I didn’t. I actually ended up doing a 1st position HELOC and removing the mortgage all together. We had 5k left on the grant money that we still owed, but we ended up paying it through the HELOC. Made sense at the time.

@Dan M. Thanks for your response. Unfortunately, a cash out refinance was not an option due to the restrictions on the program we used to buy the house. It was a downpayment assistance program that requires us to stay in the home without selling or cashing out for 5 years. After another 2.5 years that won't be an issue, but I was just trying to find a way to access the equity right now.

Good advice about the credit though. Thank you!

@Michael Lynch Hi Michael, I am in the exact same situation as you were with a grant on my home in 2nd position that covered downpayment and closing costs, 20% being forgiven every year.

I'm curious about what you ended up doing or if you found a solution. Did you find anyone that would do a HELOC in 3rd position?

@Beth Wheeler congrats on your 4th rental property! Thanks for sharing as your story is helpful and good to hear. I didn't know anything about a 1st position HELOC, but now I'm researching and trying to learn more about it to have as an option. I don't think it will work for my current situation though.

I'm curious: How does a 1st position HELOC help pay down the mortgage faster? Also, do you already have to have quite a bit of equity in the home for that to work?

Thanks!

@Joseph Firmin hey thanks for the info, Joseph. I didn't do a cash out refi because I purchased my current home through a program (Neighborhood LIFT) that essentially paid our downpayment and closing costs. It is free money, but it is forgiven over time. It won't be fully forgiven for another couple of years, and in the meantime it is a 2nd position lien. If I sell or do a cash-out, I have to pay the remaining balance of that LIFT money. So,I wasn't thinking of doing a cash-out until that money is completely forgiven, and I thought maybe I could access the equity with a HELOC instead (still checking to see if that's possible).

I wasn't familiar with a 1st position HELOC, and I'm sure I can't do that with my situation. However, I'm glad you mentioned it because I'd like to learn more about it and have that as an option at some point.

Hello!

I recently refinanced my primary home, and am now looking into getting a HELOC to use to acquire a rental property. My plan is to BRRRR, which would include credit pulls for the purchase (hard money) and refi of the rental, all within the same year. My question is this: Is it ok to be doing this all on my personal credit? Will my personal credit take a huge hit with all these loans back to back? Is there a better way to set this up or is what I'm doing pretty common? I just don't want to mess up my personal finances too much IF there's a better way to do it that I don't know about.

This would be my first investment property so I don't know if I'm overthinking this or if there really is a better way.

Thanks for your help!

Hello!

I recently refinanced my primary home, and am now looking into getting a HELOC to use to acquire a rental property. My plan is to BRRRR, which would include credit pulls for the purchase (hard money) and refi of the rental, all within the same year. My question is this: Is it ok to be doing this all on my personal credit? Will my personal credit take a huge hit with all these loans back to back? Is there a better way to set this up or is what I'm doing pretty common? I just don't want to mess up my personal finances too much IF there's a better way to do it that I don't know about.

This would be my first investment property so I don't know if I'm overthinking this or if there really is a better way.

Thanks for your help!

@Chris Teti Ok interesting. Are you saying that a personal line of credit is a better option than a heloc? I would think that the interest rate on those would be higher than a heloc, right? What would be the benefit of an unsecured loc vs heloc?

I agree with using a heloc as more of a backup, and that's what I would like to do. My plan is to use the heloc for holding costs, closing costs, and any extra rehab money needed. With the hope that I can get most if not all that money back when I refi out after a few months. Is that along the lines of what you're saying?

Hello!

I recently refinanced my primary home, and am now looking into getting a HELOC to use to acquire a rental property. My plan is to BRRRR, which would include credit pulls for the purchase (hard money) and refi of the rental, all within the same year. My question is this: Is it ok to be doing this all on my personal credit? Will my personal credit take a huge hit with all these loans back to back? Is there a better way to set this up or is what I'm doing pretty common? I just don't want to mess up my personal finances too much IF there's a better way to do it that I don't know about.

This would be my first investment property so I don't know if I'm overthinking this or if there really is a better way.

Thanks for your help!

Hi @Pablo Hernandez,

Did have you had a chance to check out REIN and TNREIA? I'm looking to check them out and am wondering if you found either one to be better or worse?