All Forum Posts by: Phil T.

Originally posted by @Jeff Wallenius:

@Phil T. I moved out about 2008 from that area. Still have a rental there so let it grow! Try Chemical Bank in Cincy, I've had some investors that have had success with them.

Let me know if I can assist you in any way!

Thanks Jeff!  I'll check out Chemical Bank and I may reach out once I get closer to putting together a deal!

Originally posted by @Jeff Wallenius:

@Phil T. I used to live in Fisher's Landing and still own a rental there! Did a flip in Battle Ground in 2006. 

With a HELOC figure worst case scenario and a very poor appraisal. Are you comfortable leaving 10-15-20% in the deal? Can you swing that payment? Factor in the rate you pay to your HELOC as worst case scenario, and see if you still cash flow.

Happy to provide more detail!

Not sure how long ago you moved out of the area, but Fisher's Landing has been growing like crazy lately!

Once I get the HELOC dialed in and all set, I plan on being super conservative on my numbers and doing my best to make sure I don't get myself into trouble with this thing. Looks like you're in my target area (Indy). I already have a duplex there and plan on continuing to invest in that area. Do you have any recommendations for a bank in the area that might be able to help me with a project like this?

@Clarence Johnson Absolutely. I just wanted to make sure that there was somewhere that would be able to do a deal like this since I’m a newbie to make sure that I wasn’t getting too far out over my skis. I definitely plan on making some calls to some banks in my target area as well.

@Brian Dickerson I talked to Rocket Mortgage and they said 6 mos, which seems pretty standard. I still have some calling to do to banks in the Indianapolis area to see if I can find a local lender that’d be willing to help with something like this. Keep me in the loop with how your experience goes. It’d be nice to hear how someone else does it too!

@Alex Craig and @Al Williamson, thanks for the input! I spoke with someone at Rocket Mortgage after I posted this, and they said they'd be able to help with the refi on the property, and that since they would be refinancing the debt, that it wouldn't count on my DTI. Would it be better to wait for a while to start using this strategy, and get a few more properties under my belt using conventional 20% down lending?

I'm in the process of getting a HELOC to use towards purchasing a rental. I plan on buying the rental with the money from the HELOC, then probably doing a BRRRR on it. Should I be concerned about doing the refinance portion of a deal like this? I'm not sure if a bank would count the money on my HELOC as "debt" and say that my debt to income ratio was too high to qualify for a refi since I wouldn't be able to show much rental income on the property yet. I might be overthinking it, but will someone let me know if I am? Thanks!

I am in the process of getting a HELOC through my CU that is 6.5% over 20 years.

@John Leavelle, or anyone else who has done a deal like this, what bank did you use for your refi? The bank I’ve been using isn’t able to do it.

I just bought my first property in Indiana (I live in WA) and I'm totally comfortable with it. The key for me was finding an agent and PM that I trust.  The agent took me through the house on FaceTime and I checked the area on Google Earth and checked the crime map on Trulia. Maybe it's just me not knowing better, but I don't know how much more info I'd get in person.  I say if you're comfortable with your team in the area and your numbers work after all of the fees that come with using a PM and everything, go for it!

Thanks @Basit Siddiqi!  You wouldn't happen to have a suggestion for an accountant in that area, would you?