All Forum Posts by: Neil Henderson

I'm running into much the same barriers as you are here in the Vegas market @Lucas Mitchell

Just no way I can get any of the numbers to work for buy and hold here in Vegas. Too much of a sellers market. I think I will be following yours and @Omar Merced lead out of state somewhere. 

@Ken Barnett My wife and I have substantial equity in our home. Using a HELOC to fund a cash purchase on a buy and hold then doing a cash out refi at 6-12 months is one strategy I'm exploring. If I understand correctly, this strategy only works it you force some appreciation by rehabbing a property?

I've have done this here and there over the years. Took my wife and I first class to Maui for our honeymoon on Alaska with their companion pass and took us both to London in first class on British Airways.

I haven't done it as much lately, beyond my monthly spending that goes on my Starwoods card, but I'm contemplating signing up for some cards with bonuses in the next 12 months. Really eyeing that Southwest Airlines companion pass to cut down on the cost of traveling with my family. 

I'm curious if any of you out there who invest in real estate also churn these bonus cards aggressively. Conventional wisdom is if you're going to be applying for any kind of home, car or equity loan, you should avoid applying for new credit cards.

I should add, I'm very suspicious of Sheldon Adelson's ulterior motives on this deal. He's made a big stink about the LVCVA setting aside a huge chunk of public money to expand and renovate the LVCC. The money he's going after to help fund the stadium is the same money that is ear marked for the LVCC project...which just so happens to compete with his Sands Expo for conventions.

http://www.citylab.com/politics/2015/09/the-never-ending-stadium-boondoggle/403666/ "Subsidizing stadiums is an economic disaster The overwhelming conclusion of decades of economic research on the subject is that using public funds to subsidize wealthy sports franchises makes zero economic sense and is a giant waste of taxpayer money. A wide array of studies have shown that professional teams add virtually no income to local economies. In fact, some of them find that large subsidies actually have a negative effect, taking money out of the local economy. Aside from the jobs generated by actually building the stadium, most jobs inside the stadium—selling food and beer or working at team concessions—are low-paying temp jobs. It’s even worse for football stadiums, which are used for games at most a dozen times a year, and maybe a few more times for concerts or large events. Public economic development dollars can be put to much better use on things besides subsidizing sports teams and their wealthy owners."

@Account Closed can you expand on your use of the HELOC a little more or point me in the direction of an article or book that describes the method you're referring to. I've heard someone talk about it before. I think @Natali Morris

I owe $90,000 on a property worth $470,000 and I'm trying to figure out how best to leverage that equity.

My wife and I run an AirBnB out of our casita in front of our house in Las Vegas. I've looked into buying property here to convert to short term rentals but the uncertain regulatory climate gives me pause. Research the local laws, talk to a lawyer and even then, have an exit strategy in case the laws are changed. @PaulaPant over at Afford Anything has written a great blog post on the subject of short term rentals versus traditional long term rentals.

Thanks for sharing Arianne L. You're following the model I hope to be using in about six months. Congrats!

So, in trying to get my spouse motivated about investing in real estate, (her eyes tended to glass over when I tried to explain BRRRR) I asked her if she wanted to start watching reruns of the show Fixer Upper from HGTV. Worked like a charm, within one episode she was talking about how much she thinks she would enjoy rehabbing properties. Great success!! Now, the caveat is, I know many of these shows can be pretty far from reality. Are there any especially egregious falsehoods that these shows propagate to watch out for?

@Brandon Borah How does the exit/payoff from the HELOC work? Are you using the HELOC to pay cash for the property then doing a cash out refi 6-12+ months down the road to pay off the HELOC? I assume you'd need to force some appreciation in there to build up enough equity to have the refi cover the total balance on the HELOC.