All Forum Posts by: Trenton Mattson

Quote from @Nicholas L.:

@Trenton Mattson

post some specific numbers

otherwise we're just philosophizing =-)

@Benjamin Aaker  rents could be $2500-3295 in this area. Good schools and good area. 6.6% would be for a rental loan with some buy down

In Good areas of CA I'm seeing some opportunities in potentially buying condos. Wanted some input from people that have bought condos that have HOAs. Are condos better for long term maintenance costs? Benefits of an HOA in a condo community? Pros and cons? 200-350k for condos seems like it could cash flow in CA. This would be pricing for local condos to me for my first property, I know out of state is more affordable but want to get the process down locally first. Thank you!

Quote from @Lorenzo Prieto:

Hey Trenton, based off some quick calculations @ 90% LTV of 675k you would have another $77,500 of equity (after your all in 530k amount). I think it would make more sense to keep the lower interest rate of 2.875% on your primary loan and refi the HELOC up to 90% LTV that way you would have access to the additional 77.5k. If your ratios are in line you could purchase a new primary and at your projected 3200-3600 and it doesn't look like it will cash flow but it would cover the majority of the mortgage on the 1st and the HELOC payment.

Would that apply if I get reappraised at a higher value after the work is done? 

Quote from @Zach Taylor:

@Trenton Mattson Since you don't care about cashflow, I wonder if your home could attract rents at or above your mortgage as it stands now without any upgrades. If you are able to rent it out without adding any improvements to it, you could then leverage that equity in the form of a HELOC to purchase another property.

I’ve already begun the process of the updates/upgrades. I’m all in at 530k. Again only 405k in my original loan. Before upgrades 675k appraisal. Should I refinance to put the HELOC into one loan and the keep the HELOC open? We are also willing to stay in our current home and purchase other properties with the HELOC if we can free up more money (with a higher appraisal) or refinance the HELOC amount back into a mortgage since the house will be worth more. Feel like there’s so many options not sure which is best 

Primary residence =$400k loan, appraisal $675k before upgrades, lived in for 3 years.

HELOC utilizing $125k for upgrades.

Mortgage $2200, rental comps $3200-3600.

Best way to proceed with getting into another home and begin renting current one?

Don't need the cash flow in my pocket, Would hope to use the cash flow to pay down HELOC, but skeptical on refinancing because my current interest rate is 2.875%. Was thinking this could mimic BRRRRmethod without the capitol gains impact if I needed to sell. Thoughts or suggestions?

Primary residence =$400k loan, appraisal $675k before upgrades, lived in for 3 years. 

HELOC utilizing $125k for upgrades.

Mortgage $2200, rental comps $3200-3600.

Best way to proceed with getting into another home and begin renting current one?

Don't need the cash flow in my pocket, Would hope to use the cash flow to pay down HELOC, but skeptical on refinancing because my current interest rate is 2.875%. Was thinking this could mimic BRRRR method without the capitol gains impact if I needed to sell. Thoughts or suggestions?