All Forum Posts by: Ryan Howell

@Chris Harjes - Here is a great link to reference the Wilmington laws and how the State voted along with how Asheville has adjusted to be inline with them.  https://www.citizen-times.com/...

@Kelly Olson - We are happy to help.  All of the agents on my team invest themselves as well as helping other investors.

Agreed with  @Drew Sygit. It depends on your plan. If you are doing a BRRRR for example with intent to pay that capital back to yourself and repeat the process, a HELOC is best because you're only paying interest when you're using it. If you plan to buy a turn key rental and use the money as your down payment, then I would refinance so you don't get stuck with variable interest in this environment of rising rates.

You should be able to rent it out and immediately do a cash-out refinance with a no-doc/DSCR loan. I wouldn't sell based on the numbers, but it would also depend on the area and property. If it is a solid property in a good area, I would hold onto it. It sounds like you could refi for ~$168k at 75% LTV if it appraises at $225k. That would basically be a solid BRRRR and you'd meet the 1% rule which means it would probably cash flow decently and you could still have some cash for reserves.

I don't necessarily think a partner is the only way....A partner needs the highest level of trust, confidence, alignment on goals, etc.  I suspect it would be way easier to find a good PM, real estate agent, or a network of other investors/landlords in the area to share expertise and advice.  I would focus on those instead, as that may be a better way to achieve your goals.

Welcome!  My advice is to start networking with local investors in your area in addition to education.  It looks like you're already in a great position already to get started.  Now, you just need to surround yourself with people who are doing what you want to do.  Best of luck!

Quote from @Wade Cecil:

Hey everyone!

I want to purchase one or two STR's as soon as possible (Possibly in Sevierville, Pigeon Forge, Gatlinburg areas). I've researched the area and have a good understanding of the overall market.

I have 450k equity in my primary residence and about 60k in cash reserves. I am unable to STR due to neighborhood restrictions and long term rental doesn't make sense.

Here are the two options I’m considering (I’m open to other ideas):

Option 1: Take out a HELOC on my primary home. Note - I am unfamiliar with HELOC's and how it affects DTI ratio when purchasing an investment property.

Option 2: Sell my primary home and move into a family owned home for free (think 1940’s, no insulation, heated by a wood stove). This option would allow me more cash to deploy but my family would be “uncomfortable” with the living arrangements, but definitely doable.

I currently have two LTR mortgages and my primary mortgage. Thanks in advance for any advice.

I would not do a HELOC unless it is for short term use.  If you use it to BRRRR a property and pay it off in 6 months then go for it, but if you’re buying turn key, you’ll have a lot of money on variable rate interest which is rising rapidly. 

Why not sell your home and buy a property with an ADU that qualifies for single family financing and utilize the ADU for additional income?  It should allow you to keep your DTI in check and have plenty of capital to deploy for another investment.

@Angie Poonka - Have you visited any of these towns?  I think that may help give some insight.  There are a lot of great towns that can perform very well in WNC and there are some that are very rural.  To @Mitch Davidson's point, the type of vacation in Gatlinburg/Pigeon Forge is completely different than in Asheville and surrounding towns.  If you're planning to move into it, I think you have to weigh that aspect.  Gatlinburg/Pigeon Forge is very high tourism and tends to attracts people that want to go to shows, visit "tourist" shops, etc.  Asheville and neighboring towns have strong tourism, but a completely different vibe and tend to attract of lot of people seeking the outdoors for hiking, mountain biking, etc and those who want to live in the mountains as a primary or 2nd home.  This may be an oversimplification, but they are very different in my opinion for what the typical vacation looks like.  I will note that I'm local in Asheville and broker here and not in East TN, but I have spent a lot of time there and lived there too.  Both can be great areas to invest, just different.

Focus on growing your income at the same time and becoming the best at your job.  It may not seem to align with RE, but the skills needed to be a rock star in any industry are more similar than you think.  Use the W2 income to get your first loan on your house-hack and get the snow ball started.  Use nights and weekends to attend meetups, read books, rehab the house, etc.  Unless you're in a very unique situation, it will be very hard to use OPM with no experience and no job.  Start building your track record and relationships first.  Congrats on no debt and seeing the value of real estate.  You're way ahead of most at this stage of life!

@Wendy Lavana - Wow, old post!  I still invest here and I'm an agent with a team of investor minded agents.  Happy to help however we can and tell you everything about Hendersonville!