All Forum Posts by: Ryan Plante

I wouldn’t get caught up in what is going to interest. You can pay more than minimum in payment on the heloc and unless you are Ina really short amortization half your payment will not go to principal.

Also heloc or fixed second is not likely to impact ltv being 80 or 90. Main consideration is rates. Heloc advantage is that if prime goes down over next few years your rate will drop without refinancing, and you only have to borrow and pay interest on what you need when you need it unlike fixed second where you take out full amount at close.

That makes sense. It's definitely sounding like the HELOC makes more sense.

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Hey all!

I built the house my wife and I are living in a few years ago for $500k, and it’s currently appraised at $850k. So we’ve got a good chunk of equity I’m wanting to leverage. I currently don’t have any rental properties, so this would be my first leap into the game.

My initial goal was to grab a HELOC on the house for about $200k (80% utilization), and use whatever amount necessary to fund the down payment and rehab costs and BRRRR the property I decide on, then use the money I refi out to pay off the HELOC. So there'd never be a balance being held for an extended period of time.. (is this a viable plan of action? I read just recently in the BRRRR book that you ideally pay cash for the properties with this strategy. Can I not just use traditional lending, then refi once the rehab and rent portions are done?)

However, an investor friend of mine said a 2nd mortgage would be a better play, because you could utilize more equity (call it 90% LTV) and purchase multiple properties and continue to just keep that 2nd mortgage, because half of your monthly payments will be going to principal, so carrying a balance isn’t a huge negative vs with the HELOC the payments are 100% interest, so you’d want to get the balance back to zero asap.

Thoughts or advice on what to consider with these options and how to come to a solid conclusion?

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Hey everyone!

I'm a 23 year old realtor based in Saint George, UT, and have been doing research on investing for about the last year now looking for the best way to jump into the game of real estate investing, and I'm anxious to get started.

I'm torn with what my first move is going to be.. I want the passive income of rental properties, and I love the idea of multi-family units. I also know, especially being a realtor, that I can dabble with wholesaling as well.

What advice do you guys have on getting my toes in the water?

Thanks everyone! Looking forward to the future.

(also, if there are any investors in Saint George, I'd love to treat you to coffee to pick your brain, just let me know!)

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All Forum Posts by: Ryan Plante

Ryan Plante has started 2 posts and replied 3 times.

Post: HELOC or 2nd Mortgage?!

Post: HELOC or 2nd Mortgage?!

Post: New Investor Alert!!