All Forum Posts by: Michael S.

My mother in law wants to buy a new house, i own 2 SFRs and would love to possibly partner with my in-laws (we have good relationship lol) with their old house to rent it out, and split the profit. or somehow get this property from them and keep the profits to just me, but i'm looking for a win-win. they are interested in going in on the deal.

key issues: In-laws don't want to pay two mortgages. They owe 90,000 with 670 monthly payment. the house is worth 160,000 as a 3-2 with 2 car garage. property is in great condition. the house they want will require a 60k down payment and they may still qualify with another mortgage but i cant guarentee it.

I cant buy it from them because my DI ratio is maxed as i have 2 HELOCs on my rental properties along with 3 mortgages including my personal property. my wife is a stay at home mom and I own my own business, qualifying for a mortgage is insanely difficult with no W-2 income. I'm actually surprised i got 3 (thanks BP). I have 75,000 in equity that i can tap into at any time.

any good ideas to how to get this done? Thanks BP. Mike, S.

My mother in law wants to buy a new house, i own 2 SFRs and would love to possibly partner with my in-laws (we have good relationship lol) with their old house to rent it out, and split the profit. or somehow get this property from them and keep the profits to just me, but i'm looking for a win-win. they are interested in going in on the deal.

key issues: In-laws don't want to pay two mortgages. They owe 90,000 with 670 monthly payment. the house is worth 160,000 as a 3-2 with 2 car garage. property is in great condition. the house they want will require a 60k down payment and they may still qualify with another mortgage but i cant guarentee it.

I cant buy it from them because my DI ratio is maxed as i have 2 HELOCs on my rental properties along with 3 mortgages including my personal property. my wife is a stay at home mom and I own my own business, qualifying for a mortgage is insanely difficult with no W-2 income. I'm actually surprised i got 3 (thanks BP). I have 75,000 in equity that i can tap into at any time.

any good ideas to how to get this done? Thanks BP.  Mike, S.

@John Leavelle 

i withdrew my 401K outright and am taking the penalty hit. i tried being very strategic. This year my wife quit her job, along with buying REI#2 the tax write offs will be huge and I'm on track to being in the lowest tax bracket because i don't make alot of money in my W2 job and my wife staying home.

i went the ARM route because i couldn't get anyone to lend on REI#2 because it was classed a C6 property making it inhabitable.(Creative financing, right? lol) The house is 80% done with repairs, and i should be able to get a mortgage on it by October. so I would have the ARM loan for 6 months.

The ARM route is fabulous because they lent me the money so i could do repairs quicker. it was my first time ever doing it but its been great with how flexible this Real estate friendly bank (River city bank)

Thanks again John!

#1 SFR- 40K HELOC available, its was paid off with my 401K. rent is 860 month, Cash flows 600 monthly with no HELOC payment.

#2 SFR i used 14k in cash down payment used from HELOC that is now paid off from #1SFR(used 401k). 67k Loan is from a local bank. i will have to pay the lump sum payment at the end. i have 380 interest only payment each month. this rental wont be completed for another 2 months as im doing the work myself (i know i should hire it out, but i got the skills+time) it will rent for 1100.00 month hopefully for 1300.00 but i will stay conservative.

#3 personal home requires no rehab it is great. ARV 150,000

Thank you very much for the wise words @John Leavelle. I'm hustling as hard as i can working 2 jobs with a family of 4. without BP none of this would've been possible. Thank you

Thanks @Jaysen Medhurst. 

the paid off house should be worth 80k, the 40k HELOC hasn't been touched as i used it to finance the repairs on my new rental and personal home. it is now paid off, i have 7 years left on it.

Also, on the BRRRR i should've clarified that i put down 14K on the 80K. so technically right now i have 67K 1 year loan. that's not counting the interest only sum i owe either.

Thanks for the reply!

I have 1 rental filled with a tenant. the house was fully paid off but i have a 40K HELOC on it. Just finished my 2nd deal which was a BRRRR kinda deal. bought it for 80k, ARV is 130, putting 15k in repairs. To purchase the property i used a 1 year ARM loan. I'm wanting to get a 30 year Conventional loan and see if i can pull out as much equity as I can to fund other B/H deals. Also, I'm living in a home with some equity. i owe 75k with a 30 year Mortgage. payment is 550 month. its ARV is 150k.

      My main thing is, I need either guidance or assurance that what i am doing is good. Or could it be better? How would you proceed from here? I apologize if i left any details out. Thanks BP!

Basically, is their any tax advantages in using the heloc for a primary residence? interest only payments able to be tax deduction?

The plan is to pay each off, after one is paid off I get another. by pulling equity out of last paid off home (sfh). I figure with 3 paid off rentals I could csshflow 1800 a month which could fuel my next purchases. After about 10 I could be cash flowing 9k a month. Which is my ultimate goal. I feel like one at a time seems pretty smart. But I was just wondering if anyone has kind of done it this way?

My ultimate buy & hold plan is to buy 1 property at a time, the difference is I plan on living in the first 2. then after that find and pay off my personal property.   I plan taking out the equity out after each one is paid off for the next down payment. it seems like a great strategy. safe, slow, and seems smart. The only thing is I have to wait to get my ducks in a row. I feel like out of the 1000's of ways to do buy and hold. This one seems like the best approach, Not too much risk but just risky enough. am I going about this wrong? any advise?     Thank you

the investment would be about 60k to 80k. I'm not particularly risky. More conservative. But I have 2 stable jobs and my wife does as well. I'm trying to approach this from a good angle. And start off right.

Another question is should I try to pay the heloc off faster than the mortgage?