All Forum Posts by: Alipate Moleni

Other than PenFed, are there any lenders who offer HELOCS on investment properties these days?

The situation: I have a bunch of equity tied up in an investment property. I almost closed on a HELOC with PenFed, but because I was in the process of purchasing my 4th property, they wouldn't do it. They won't do investment HELOCS for investors with more than 3 properties… the potential purchase also threw my DTI out of wack.

I just refinanced (not cash out) this property a year ago and am not looking to do another refi, as it would cause the property to not cash flow… 

I also don’t want to sell the property.

@Sheldon Tausch I to am investing long distance from Hawaii (Big Island). I Currently have 4 duplexes under contract in Arkansas. I found that investing out of state is pretty much the same as it would be locally. It seems you’re a step ahead of where I was since you already have your market figured out.

Now you just need to:

1. Find investor friendly agent (I recommend looking on BP)

2. Find a rockstar property manager (also recommend BP)

3. Find a Lender (best to look locally for these, easy if using conventional financing)

Once you have a team in place they can help you determine what specific areas to invest in and the property type to pursue. This is where you determine your criteria.

Once you’ve decided your criteria, have the agent send you properties that come close to that criteria. Analyze them. If the numbers look good, run it past your PM. If it still looks good, make an offer!

Say I purchase 4 duplexes through one seller financed loan: 40% down (which is all the cash I can put down) 5% rate, 30 yr am. Although the finance terms aren’t the best, I’m getting the properties in good shape for only about 80% market value. Also, this gives the seller a quick close, and cash to pay off his loan (which is what he ultimately wants). I was wondering if there is a way to refinance the single, seller financed loan into 4 separate conventional loans for better terms and to take cash out. How would that work?

Many experienced landlords will tell you that turnover is their biggest expense. I have read that turnover is much more common in multi units than in SFR properties, and the reasons given make sense. I have a few SFR rentals but I don't own any multi unit properties. I don't really know the difference between the two when it comes to turnover and vacancy, other than what I have read online.

I wanted to put this question out there for investors who have owned both single family residences and multifamily units, who have experienced this first hand:

Is there really more turnover in multi family properties than in single family resident properties?

@Gretchen Parlier Sounds like an interesting property... If it has the infrastructure (plumbing, electrical etc.) to hold mobile homes that’s awesome! What if you fix and flipped the mobile homes? You could offer seller financing and charge rent for the new owners who will most likely want to keep the mobile home on your lot if it’s nice enough. That way your getting rid of a depreciating asset (the mobile home) but creating two income streams for each mobile home: lot rent and a mortgage payment!

@Eric Goldman I am also looking for a lender for cash out refi for an investment property...

@Dillan Stoor I reside here in Puna (HPP, Keaau). I Just purchased 2 SFR rentals here last year. I Also own an SFR rental in Orem, UT, which is where I moved from 6 years ago. I don't have much REI experience and have even less experience with rehab. I am currently looking for land deals to develop or rehab deals to BRRRR or flip here in Puna. I do know the area pretty well so if you have any questions about it let me know.

@Waylan Liu if your plan is BRRRR I'd consider heloc over refi. Keep the current cash flow on your properties, low closing costs, only pay for it when your using it... on the other hand, now is a good time to refi into a fixed 30 year for super low rates... this is a good problem to have but you definitely need to put that equity to better use IMO.

@Travis Carvalho I to am a rookie buy and hold investor on the Hilo side of the big island, Puna area to be specific. So far just have 2 sfr rentals in hpp area (also have 1 on the mainland). I believe Puna is the only place in the state where sfr rentals still make sense. Would love to connect sometime and see if we could help each other out.

I own a 4 bed 2 bath 2100ft2 rental in Orem, Utah that I could probably turn into a 6 bedroom house. Its about 5 miles from both BYU and Utah Valley University Campuses, about 10 min drive to both campuses. Is this too far from both campuses to turn into a student rental?