All Forum Posts by: Payton Ball

I think the website went down for a few minutes after I posted this. Just commenting to hopefully bump it up again.

I’ll start with the basic question then elaborate below. 

Can you still draw on a HELOC once you move out and the property becomes a rental?

I haven't seen anything that says no in the documents for mine, but I would assume that some would at the very least freeze it once you move. I've heard of situations where people have a HELOC that they still use years after moving out.

My plans are use the HELOC to build a detached garage and ADU on my new property, then refinance and pay off majority of the balance.

I’d like to get opinions before I bank on that strategy. I suppose worst case is that I could draw the balance right before I move, but I’d rather not pay interest before I have to.

Thanks in advance! 

@Mason Hickman thanks Mason!

Just did some digging and here is what I found.

Deed was transferred around the time the legal issues started according to the articles I found. They did not share a last name, but I assume it could’ve been family (a sister that was married), or a close friend.

The deed was transferred back to him a few months later.

A few months ago, an assignment was recorded to the current beneficiary, which is a bank. This bank advertises HELOC's on its home page so I assume there was one that was used

A few weeks ago, a substitute trustee was filed. It was changed from a person, to a trustee service company by the beneficiary I described above? I wasn’t able to find much information on this company online.

This is all very new to me, and I have no idea where this leaves me.

@Wayne Brooks thanks Wayne

Bought in 2011 for 125 and it’s worth almost double that now. Plenty of equity as long as there weren’t refinances or a line of credit.

Very unique situation here that I would love advice on.

I drove by a duplex that was incredibly rundown and decided to stop and take a look. It had clearly been vacant for a while, or whoever was there last left it in horrible shape. I spoke to a neighbor and he said it had been vacant as long as they’d been there (over a year), and didn’t know any details.

I did some digging and found that the owner had been arrested in 2019. Based on the charges, he won’t be getting out of jail anytime soon. I went back to the property and there was a piece of paper on the door that said no trespassing, and MCS (Mortgage Contracting Services). It looks like that company is a service provider for banks.

In summary, has anyone come across this before, and are there any tips on how I can get through to the bank? Is anyone familiar with MCS, and does them being involved mean its already too late? Any advice and tips would be appreciated!

Investment Info:

Single-family residence wholesale investment.

Purchase price: $14,000
Sale price: $19,000

Got this under contract at $14,000, and it didn't fit the criteria that I wanted for my rental portfolio. I'm also newer so I am looking to build capital to pour into future rentals. The situation was that the owner had let a tenant plant there for years without renewing a lease, or checking in on the property. She didn't realize how bad a shape it was once we went over and looked at it together.

This lead came about from text message campaign. Profit was an even $5000.

What made you interested in investing in this type of deal?

Build capital for rentals

How did you find this deal and how did you negotiate it?

I was honest with my intentions but that what I could offer her was a hassle free sell, and she was thrilled with that.

How did you finance this deal?

EMD of $250 that was returned at closing. Cost to find the deal was marketing and CRM software.

How did you add value to the deal?

Made it easy on the seller - she worked long hours, and didn't have time to go through the long process of selling.

What was the outcome?

Profit of $5000

Lessons learned? Challenges?

It was my first and there were things I was afraid of, but this opened my eyes that a lot of the things I was afraid of weren't that big of a deal!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

N/A

@Salvatore Lentini I've house hacked and am looking for my first investment property whether it be a BRRRR or just a good deal with conventional financing

It’s been said a lot on BiggerPockets, but it’s paralysis by analysis for me. I think through every possible scenario, both good and bad. I tend to focus on the negatives. I’ve gotten so much better, but am still having trouble stopping the “what can go wrong, will go wrong” snowball.

Hey Everyone!

I’m a newer investor, and I’ve kept my eyes on the triad (Winston Salem, High Point, and Greensboro) for close to a year now, and heavily in the last few months. There seem to be some zip codes (27260 in High Point for example) that investors in the area recommend to stay away from entirely.

Any advice from investors in the area on higher crime neighborhoods? There are properties where the numbers make a lot of sense, but I know those areas come with significant headaches in many cases that often times aren’t worth it.

Thank you for the help!

Investment Info:

Single-family residence buy & hold investment in Charlotte.

Purchase price: $254,500
Cash invested: $17,000

Currently a House Hack using an FHA 3.5% down loan! It's a 4/3 in a nice area of Charlotte, and the rent exceeds the mortgage! At move out it won't be heavy cash flow, but should be about $150!

Thank you for your responses everyone!  Sorry I'm late getting back.  This one came and went, but learning along the way.  I'm in Charlotte right now but have identified a few surrounding markets where the 20% down plus a rehab before the cash out refi is doable