All Forum Posts by: Tye S.

@Theresa Harris My assumption is that by paying off their mortgage they will have access to a larger amount of money which could potentially buy them more BRRRR properties.

@Bill F.  Client is 30 with a 100k+ annual income and looking to grow a rental portfolio or fix n flip if that makes more sense on a particular home.  

@Caleb Heimsoth Thank you - hadn't thought of that.  I will mention it as an option.

Had a client who wants to get into investment properties pose this question and I wanted to get other's opinions.  

Here's the situation:

Client has a rental that they owe 150k on.  They have the means to pay it off and still have a little money in the bank.  The property is worth 350k.  

Here's the question:

Would you take the 150k and pay off the note to secure a HELOC worth $262,500 (75%) OR would you take the 150k and simply invest it into other properties?

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Coeur D Alene.

Purchase price: $265,000
Cash invested: $172,000
Sale price: $550,000

Largest project to date. Major rehab/updates and converted from duplex to SFR to maintain integrity of the neighborhood.

What made you interested in investing in this type of deal?

Saw the potential for years and the opportunity eventually presented itself.

How did you find this deal and how did you negotiate it?

Lived in and flipped a neighboring home.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Where to start...

What was the outcome?

Positive

Lessons learned? Challenges?

Everything takes longer than expected and costs more than anticipated.