All Forum Posts by: Nate Martin

Hey everyone. First post asking for advice. =)

Purchased a duplex for 90K on a land contract in August. About to close on it Friday the 26th and buy out the sellers mortgage with my own. His mortgage was 140, so I will inherit about 50k worth of equity. During the process of me applying for my loan I had to get an appraisal. It appraised for 220k. 

I needed to borrow 7k from my parents to get the loan approved, and I will have to pay them back after it closes. I plan on taking out a HELOC off the equity to pay them back.

My original plan with this deal was to get some tenants into the property to pay my mortgage for me so I "technically" wont have a house payment, and what I used to spend on rent before I bought my house, and any rent I collect will go into a savings account that I can use to purchase another property. (advice from the bigger pockets set for life book)

My question is, since I have to get the HELOC anyway, should I just get it for the max amount and use that money for my next property? Or I could then use that money and become a hard money lender correct? If I do that, what consequences arise from these decisions?

Should I just get a HELOC for the 7k that was borrowed from my family and put it on the market and see if it sells for the appraisal value, cash out and then have the money in cash and fill out a 10-31 exchange?

Speaking of a 10-31 exchange how does that work? does the next house have to be equal or greater value or lesser value than the previous house?

Any advice on what you would do in this situation would be super helpful. Thanks everyone! 

Hello and welcome!

Hello back from Milwaukee. Good luck on your journey! 

Glad I saw this! Is there a planned place? I see a time but no place?