All Forum Posts by: Steven Gebhardt

Hello,

There is a nice subdivision going up behind our house that has a mountain in the backdrop (no neighbors in the back) and on a cul-de.sac. We have three little kids and live on a busy street so we love the thought of living on a cul-de-sac. I envision renting out our current SFH and moving. That being said, they are still developing the lots. Since the start of developing, price per square foot has gone from $160-->165-/170/ft and rates from 3% to 5.25%. What would you guys do in the situation? Do you think new construction prices will fall in the future if supply chain issues are resolved? I asked one contractor and he said new construction wont come down unless there is a "crash". Thanks!

@Stephanie P. thank you for clarifying. I wasn't sure what "limited cash out" meant but now that makes sense. 

The "construction loan" is basically a 5-year ARM that helped cover the entire purchase cost and some rehab cost. The bank gave me 78% of the ARV. So I was able to purchase and rehab the home with only $5,000 out of pocket.

@Account Closed but I figured if the bank was going to use a Fannie/Freddie loan the bank has to follow Fannie/Freddie rules? Is that not correct? 

@Stephanie P. @Jeff Shumway @Account Closed thank you guys for your input. But as you can see between the three of you there is some disagreement. Wenda said 75% is only limited to a cash-out-refinance. My banker said he could do 80% LTV with a Fannie Mae/Freddie loan.

Stephanie the property is residential but I got a commercial construction loan on it originally to do renovations + purchase the property. 

Hey guys,

I am looking to find my first investment property to BRRRR. I have been considering doing direct mail. Do you think it is worth the cost? I have specifically been looking into using Deal Machine or Propstream. To me it just seems like sending direct mail to "lists" like absentee owners may be a waste of my time and money. I am only looking to find 2-3 properties a year, anything else I would wholesale as a bonus. Any help is appreciated!

@Ganessan P. - So in my above example, I could take out the 30k from my original loan and use that as a down payment through a HELOC? How much do most lenders require as a down payment when using a HELOC? And if I were to BRRR the investment property and refinance and gain forced appreciation, I could then use my investment properties gained equity to put back into my original home loan?

Hey guys, I am struggling to understanding a HELOC and/or home equity loan. Can anyone go into more detail? So if I did a home equity loan am I just leveraging my equity or is my equity actually getting pulled out of my home loan? For example, if I had a home worth 100k and had 30% equity in it and I needed a 30k down payment for a rental property. If I used a home equity loan would I now have 0k towards my original home? Or would I still have the 30% equity in my original home loan and I am just using that as leverage? Hope that makes sense.

Hey guys, I am struggling to understanding a HELOC and/or home equity loan. Can anyone go into more detail? So if I did a home equity loan am I just leveraging my equity or is my equity actually getting pulled out of my home loan? For example, if I had a home worth 100k and had 30% equity in it and I needed a 30k down payment for a rental property. If I used a home equity loan would I now have 0k towards my original home? Or would I still have the 30% equity in my original home loan and I am just using that as leverage? Hope that makes sense.