All Forum Posts by: Tom Kaser

@John Park Call Ghost Busters

KeyBank does not do HELOC drawn from a rental, and that is what I'm trying to do. So it looks like Vectra Bank right now.

Thank you all for your response. Third Federal said they don't do HELOC on rental properties. I could take my current HELOC higher on my primary residence but kinda rather not. I'm looking to get a HELOC from one of my rentals as that equity is just sleeping like a lazy dog. And actually surprisingly Vectra Bank had a better rate than Westerra Credit Union -- prime + .5% (so 5.5%) vs. prime plus 2% (so 7%). And Vectra can potentially go up to 80 percent CLTV, worse case 75 percent. Westerra max. at 75% CLTV. So at this point I'm going to fill out an online application with Vectra and I had a good rapport with the agent there, and they are local. Unless anyone thinks I should not? Let me know this weekend.... Going once, going twice.... they will probably pull my credit Monday or Tuesday..........

I'm looking to getting a Home Equity Line on two of my rentals which will give capital to do flips or buy more rentals in the Denver area. Anyone have success with this strategy? I've spoken to a few banks and Vectra Bank in Colorado says I can go up to 80% CLTV. I mean, the equity is just sitting there, sleeping, and I want to put it to work to build more wealth. With one property I could pull out $55K and the other about $45K. So that is $90,000 in working capital I could use to do a pretty serious flip, or buy two or three more rentals.

Any thoughts BP folks?  Your input is appreciated!

Tom K

I see pros and cons to PMs. Yet it's worked better for me to manage my properties myself and let skilled contractors do the repairs as I work my demanding job and spend time with my family. If you have 20, 40, 60+ units I can se you'd have no choice but to have a PM in place. But we as owners care the most about our properties. It's our equity right? My property strategy has always been "quality properties, quality tenants" and then everything else tends to fall into place and (mostly) run itself. When tenants see you care about the property AND them, they tend to do their share. And let's say rent is $2000 per month, a 10% PM fee would be $200. For doing what? Collecting rent mostly? And if they need to re-rent it, they can charge up to 50% or more to get a new tenant? Gimme a break. That's a lot of dough. I have valid reasons for my viewpoint. But whatever works for you, more power to you. It's still a free country, let's keep it that way. 😎

I am doing a cash out refi of one of my rentals and want to either find a good flip or another rental property with good cash flow in Denver Metro area.  Challenge is finding good deals.   Can anyone recommend some good wholesalers or sources to find under market properties for rehab?  Good deals are hard to find in Denver area, lots of competition with other investors and homebuyers.  

I have considered out of state, but that takes a lot of time and travel, and I have a busy day job and a family.

Thanks.

Tom Kaser