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All Forum Posts by: Quentin Tai

Quentin Tai has started 2 posts and replied 3 times.

Post: Buy property with cash and then refi for home equity loan

Quentin TaiPosted
  • Real Estate Investor
  • Baltimore, MD
  • Posts 3
  • Votes 0

I'm still learning my way around the forums. If this topic has already been discussed, I would appreciate a link to it. Thanks in advance!

I'm a new ...pre-investor. No deals, no experience other than buying my own house, just looking around but I wanna get in! (Bear with me... I'm sure you'll see tons of holes as I go through this scenario. By all means, please rip it to shreds.)

So let's say I've found a turnkey buy and hold rental property where I think the numbers work at a certain mortgage rate. 
Let's say all the banks that I talk to aren't willing to go below 7% with me (let's pretend I've gone around and looked really hard).
Then I hear about this thing called a Home Equity Loan that, right now, would be paid back at a lower rate than 7%.
Let's say I can get the cash together to outright buy the house and then take out a home equity loan at a lower rate than the banks are offering me for a mortgage on a rental property.

This sounds like a good way to buy a property and pay a lower rate... but I haven't heard too much about people doing this so it makes me think that there are better ways to use the money that is put into buying that house...

What are some considerations that need to be made?

Are there rules around taking out a home equity loan on a rental property that would prevent this?

What if the way that I get the cash together is pooling money from a group of family/friends and paying them back after I do the refi?

If you're reading this and saying it's a terrible idea or completely unreasonable or unrealistic, please let me know why :) 

If you've done this before, please tell me about your experience!

If you have seen other discussions about this, please share a link I will continue to search through the forums myself and add anything I find here.

Thanks!

Post: Brand Newbie from Baltimore, MD

Quentin TaiPosted
  • Real Estate Investor
  • Baltimore, MD
  • Posts 3
  • Votes 0

Thanks for the warm welcome everyone!

@John Mathewson: At your stage in the game, what do you feel is the most useful part of Bigger Pockets? What was it that made you decide to get a pro membership?

@Abena Sidibe: I agree, Canton is pretty nice these days. I've heard good things about Mt. Vernon, Highlandtown, Fed Hill, Canton/Fells, Hampton, and Remington. What areas of Baltimore stand out to you?

@Account Closed: I was jumping around between podcasts up to now. I recently started from the beginning because I didn't want to miss anything. Do you have any favorites? Do you find yourself re-listening to any recordings?

Post: Brand Newbie from Baltimore, MD

Quentin TaiPosted
  • Real Estate Investor
  • Baltimore, MD
  • Posts 3
  • Votes 0

Thanks for creating this platform, Josh and BP team. Really excited to learn more!

My name is Quentin Tai. I turned 30 last week. Currently, I live in Canton which is in Baltimore, MD. I work full-time, remotely, as a web developer at Discotech. 

Around 2 or 3 years ago I read Rich Dad Poor Dad. It opened my eyes the way it does. I was a co-founder of a startup in Brooklyn at that time which meant I had no time to put towards anything, let alone learn about real-estate. By now I've changed jobs and had a couple vacations. On one of them I heard from a friend about about his real-estate investing experiences and I asked him for some resources. He turned me on to the BP Podcast and I've been hooked ever since.

I have no experience in real-estate outside of what I've listened to in the last few podcasts. My first step after posting this is to get the Ultimate Beginners Guide and get a better idea of what I'm getting myself into. It sounds like my goals will change as I continue to down this path as it has for many others but I've been thinking that my first goal will be to have enough cashflow to cover rent (if we decided to stick with apartment life and continue living in the city) or to cover the mortgage of our first permanent residence.

I probably won't stop being a software developer but I do enjoy the prospect of having a strong enough cashflow to cover my family's needs if I were ever to be in a situation where I couldn't work anymore. I also like the idea of being able to travel for pleasure more often without having to worry about the burden it puts on my bank account. I know I'm not really shooting for the stars at this time but that's all I really need at this point in life.

Hello everyone on BP!