All Forum Posts by: Sam Horton

@Doug Spence Yes, exactly my thoughts on selling it. Good point with the property manager, I have a contact and I'll reach out to pick their brain. 

It's not impossible but would require some leg work. The credit union I used lent to me within 1 month of a refinance for my residence however they may have looked at this differently because I already owned the home for two years. Good luck!

I am closing on a 2 family with a great upside for creating a 3 family plus additional storage space for increased rent. The home has a large fenced-in yard with an above-ground pool that was installed in 2021 and includes a pool heater. I do plan on getting an umbrella insurance policy on the property but wanted to see if anyone here has had experience renting a property with a pool or if I should get rid of the pool to lessen liability? - Thanks!

If it's a true $475K ARV then I don't think the numbers work for a HELOC, at least not right away.

$320K Purchase + $105K Reno = $425K 

Less the 3.5% down ($14,875)  which would be $410,125 (borrowed) 

ARV $475,000 ($410,125) = $64,875 equity or roughly 14%

You would have to try and find a local lender/credit union willing to go up to 100% equity and to @Scott E. point you would want to check to see if they would lend within the 6-8 months of purchase. 

@Alex Chennault Most HELOC lenders will only allow you to pull out 80% of equity from the primary residence. There are some that will go higher, I used a credit union in Massachusetts that allowed for 100%. Assuming the lender you go with allows for 80% essentially you would need to make sure you have 20% equity in the home + the $40K that you are looking to leverage. What kind of ARV are you looking at after renovations are completed?

@John Tomassacci - I just took out a HELOC instead of a cash-out re-fi for a couple of reasons. One my interest rate on the residence is locked at 2.8 and with the current rates I'd be around 4 - 4.5% if I were to refi. Two, I like the ability to reuse the HELOC. I am using it to purchase and reno a 2 family, which I will cash-out refi to pay off my HELOC when complete. Then go use the HELOC again on another property. My HELOC is a variable rate so I do run the risk of them increasing the interest on it. There are definitely pros and cons to both options. My biggest pro was keeping the current rate on the house I was pulling the equity from.

@Benson Bui Congrats on getting the license! For me, logistically I would pick the location where you will spend the most time. You can always switch Brokerages after you graduate. You can still study the market in other areas as you would have access to MLS and all of the data tools. You would just not have a physical presence in that area obviously. Not sure how big your school is but at my school, students were always looking for off-campus housing could be a good way to make some extra money and start learning about some aspects of the Real Estate industry. At the end of the day, there isn't a right answer, you have to go with what makes the most sense to you. Keep in mind you can always change brokerages if you don't like your decision. Good Luck!

I'd try and call as many local credit unions as you can. Most banks around me will not do a HELOC on an investment property unless you reside in the property. I have only found one credit union that would consider it. After speaking with well over 30 different lenders. Good Luck

Hello!

Not sure if this is the correct forum to post in. Tried using the "find an agent tool" within BP but only received one result. 

I am looking to connect with a Charlotte Agent that has experience with investors, wholesale connections are a plus. 

I'm not an expert in this area but if the property has $60K in back taxes, it might be worth reaching out to the town to see if there is a way to buy the tax debt. Then you can collect interest from the owner and or foreclose it to possess it yourself. I'm sure there's some articles on here that would speak to the appropriate way of going about this.