All Forum Posts by: Michael Anderson

Thanks for all the feedback.   Yes I am in the Houston market.   I plan to only use about 40% of the HEL towards the purchase and will fund the rest through cash and stock sales.    The remaining HEL funds will earn decent interest in a private investment. And the plan is to kill the HEL in about 3-4 years.  So I guess what I'm thinking here is that the short term nature of this loan will offset the closing costs and points associated with a mortgage.... 

home equity loan is fixed.   180 months.   Seems like easier money. 

We have our tenants submit payment directly into our account either online or they visit the bank.  Once they pay,  we immediately sweep it into another account.   Works like a charm.   Since we only have two props it maybe a little easier than your deal.   Mike

Hi all.   Open for feedback here.   I have plenty of equity in my primary residence to fund the purchase of an investment property.   Buy and hold.   Already own two rentals,  this would be our 3rd.   Very much in favor of leverage... Just wondering what the board thinks about home equity loan vs.  15 Yr Mortgage.   FICO in the 800s.   II think iI an do a home equity loan at 4.24% /100 K.   15 Yr Mortgage probably about 3.75%.  Seems like the home equity deal is better... But wondering what it does to me on term... For example we want to buy house #4 next year.   Hope to hear some helpful feedback!   Thanks Mike