All Forum Posts by: Shawn Skaggs

Thanks for the feedback @Alex Olson. I hadn’t really considered refinancing it every year inside the same note. That may be a possibility.

Are you also doing buy and hold with your 10 yr, fixed rate credit line? What do think are the advantages of doing it that way?

I am setting up a HELOC on my personal residence to use for RE Investing. I currently have one multi family property that I bought to buy and hold and want to continue that strategy. The line will be for $100k and set up as a second lien against the property.

Yesterday I got a call from my banker saying they were setting it up as a 12 month revolver with interest only payments. I thought about it a lot last night and this morning and that seems like a great line to flip houses or even do the BRRRR Strategy but at the moment, that's not what I'm doing. I'm focused on buying rent ready property (I want to stay primarily small multi-family) and holding it for cash flow. I know there's a lot of money to be made in flipping and that the BRRRR strategy can be great but I really don't have the time to manage the flips / rehabs right now.

Knowing I want to buy and hold turnkey or rent ready, what's the best way to structure the HELOC?

Thanks for the insight @Colleen F.! 

@Jack B. I have a tenant who is growing it in a spare bedroom right now. Same situation with the medical card and grow permit. It stinks to high heaven. It smells like she’s growing skunks and the neighbors (this is a fourplex) are starting to complain. I’m worried about getting the smell out at this point.

I haven’t pulled the trigger on an eviction yet but I’m considering it. Her son rents the unit next door and if I evict I’m sure he’ll be gone too but I’ll put something in the lease agreement from here forward disallowing it.

@Alli McGee I started using the new calculator yesterday for rental properties and eventually noticed all the calculations are wrong. Is someone looking into this?

@NaDean Bowles thanks!

I was loving the simplified faster version of the calculator.  It works much better and easier on my phone than the old one did.  There is just one problem... None of the calculations are right. The numbers are all off and if you go back and change any of your variables, the results don't change. One property in particular it showed the cash flow and COC Return to be double what it actually was. On all of the ones I tried (about 6) it would not show anywhere near an accurate number for cap rates because you can't even enter the info you need for that calculation.

By all means, give us a simplified version that we can easily use on our phone and make it fast.  I love that idea but if the numbers have to be accurate when you launch it.  It will be hard to trust it or know when it's actually fixed in the future.

@Todd Powell this great! Thanks so much for sharing. I am about 10 years behind you. I turn 43 tomorrow but my plan is to have enough passive cash flow by the time I’m 53 to have choices (like you have now). I may want to keep working or I may want to go RE Professional at that point but either way I want time to play with grandkids, to travel and to enjoy life while I’m still healthy enough to do it.

I see so many people who wait until 65 to retire and by then they can’t get around well enough to do what they’ve always dreamed of or they have a spouse with serious medical problems that can’t go anywhere. I don’t want to be in that boat and I certainly want my kids to have better options than that. Thanks for the inspiration!

Thanks @Deborah Burian!

@Joseph Firmin Thanks!