All Forum Posts by: Taylor White

Thanks Pete, I do have some money saved as an emergency fund (around $5k), but I agree that I probably need to have some more wiggle room. I guess in this case, maybe I would partner with someone so that I wouldn't need to max out the HELOC. Or I'll just slow down and get myself ready for my first BRRRR. Thanks for the advice!

Hey @Ali Boone, over the past few days I've been looking at HELOCs instead of the cash out refi. Penfed supposedly offers 80% LTV at 6.5% for non-owner occupied properties. If my house appraise for $125k, then 80% would be $100k minus the 80 that I owe would give me $20k.

The down payment on the new house would be $23k + CC. I could probably come up with a creative way to get the extra $6-7k. From what I can tell my HELOC payment would be less than $150/month and my cash flow on the property would be around $3-400. So I think it makes sense on paper as long as there is no huge expense right out of the gate, like needing a new roof or HVAC.

Does all of my math check out?

Thanks for the help!

Thanks @Patrick Menefee!

I was unaware that helocs were based on appraised value! That's really helpful to know. This new house would just be a straight buy and hold.

I do want to look into doing a partnership and I know a few people with capital who would be interested. I just need to look more into what the parameters of a partnership would look like for me.

@Jerry Padilla thanks Jerry, I can’t do a heloc on my primary residence because I just bought it 6 months ago. That’s why I wanted to look more into the options for my first house, which is now a rental. I do have some equity in that house which I could maybe pull out with a heloc

@Jonathan Oh I am getting good cash flow on the first one. About 400/month, but could easily be more. So maybe it would be in my best interest to not mess with that one.

@Fred Cannon I appreciate the advice! I do want to be wise and make good investments that make sense on paper. I’m also just trying to set some good goals and take action, so I want to do my best to know all of my options for raising capital instead of just waiting (possibly several years) until I can save enough for a 20% down payment. I can’t wait to be where you’re at with paid off rental properties!

@Zack Leverette

I’m also aiming for buy and hold, like you said you were, but right now I’m looking at using investor money to do a flip so I can build some capital to buy my next rental. Thanks for the reply!

@Zack Leverette

Probably not, but I don’t know very much about helocs. My purchase price was $92k, I financed $87,400 and I’m down to $80k principal left. Does that mean I could only pull out $7400? Or would it be $12k?

That’s also now a rental property. My primary residence is a house that I just bought about 6 months ago.

@Jonathan Oh

My first house is currently at $1100, but I’ll move it up to $1150 or $1200 when my friends move out. If I got this other house, it would probably be around the same - $1150ish

Thanks again @Stephanie P.!

That whole situation wouldn't necessarily be the ideal situation, but it's good to know that this could be an option. I'll do more research into portfolio lenders in my area!