All Forum Posts by: Ty Coutts

Hey Matthew, great question—and welcome to the world of BRRRR investing!

You're thinking about this the right way. If your plan is to use a HELOC short-term (say, 6–12 months) to fund BRRRR deals and then cash yourself out with a refinance, an interest-only HELOC absolutely makes sense in most cases.

Here’s why:

• Lower monthly payments: Since you're not paying down principal during the rehab phase, your carrying costs stay minimal—especially helpful if the property isn't cash-flowing yet.

• Short-term use = less risk from adjustable rates: Most HELOCs have variable rates, but if you're repaying or refinancing out within a year, you're not as exposed to long-term rate hikes.

• Better cash flow = more flexibility: Lower payments free up cash for rehab, holding costs, or even your next deal.

A few things to keep in mind:

• Make sure your draw period is long enough (typically 10 years), and check if there are any prepayment penalties or required repayment timelines.

• Have a solid refinance exit strategy—including appraisal comps, rehab timeline, and seasoning rules from your target lender.

• Watch for lender restrictions—some HELOCs can be frozen or reduced if the market dips or if your credit profile changes.

If this is your first BRRRR, consider stress-testing your numbers with a few extra months of holding just in case things go slower than expected (they often do on early projects!).

Happy to dive deeper if you want to talk about structuring your first deal or stacking multiple BRRRRs using your San Diego equity. You’re on a great track.

Hey Tyler welcome to the community, and great job already owning and renting out a property! That’s more than many people ever do, and it puts you in a solid position to build momentum.

On your question around a cash-out refinance—this can absolutely be a viable path to access capital for your next investment, especially if you’ve built up some solid equity in that rental.

Here are a few key things to consider:

Is the cash-out Worth it?

If your current rental has appreciated in value or you’ve paid down the loan enough, tapping into that equity can be a great move—as long as:

• The new loan still cash flows or at least breaks even after the refi.

• You’re reinvesting into another asset that performs better than the cost of borrowing.

In other words: don’t cash out to consume—cash out to grow.

Know the Lending Landscape

Cash-out refis on investment properties usually come with:

• Higher rates than primary residences

• 70–75% LTV caps (meaning you can only pull 70–75% of the home's current appraised value, minus your existing loan)

• Tighter underwriting (credit, reserves, etc.)

But if the numbers work, this can be a strong way to scale.

Alternative Options to Explore

Before locking in on the cash-out path, consider these:

• HELOC on the rental: Rare, but a few local banks or credit unions offer these—flexible access to funds without a full refinance.

• Partnering: If you’ve got the experience but limited funds, you could bring in a capital partner.

• Seller financing or subject-to deals: Might help you acquire your next property with minimal upfront cash.

• House hacking: Since you live in an apartment now, could you buy a small multi-family or SFR and live in it? That opens up owner-occupied loan options (FHA, 5% down conventional, etc.) with lower rates and down payments.

You're already thinking like an investor leveraging one asset to fund the next. If you'd like, I’m happy to walk through how the cash-out math works and whether it makes sense in today's rate climate.

Feel free to DM me anytime if you want to go deeper!

@Jerry Pfeiffer

Awesome, I'll send over a link to my calendar and we can talk more in depth! 

Hey Jerry,

Sounds like you’ve got a really solid plan and I love how you're thinking a few moves ahead. Using equity from the inherited commercial property to build your dream home and turn your current one into a rental is a great way to create both lifestyle and long-term income.

Here’s how you could think about structuring it:

Tapping into the commercial property:

If there’s a lot of equity in the inherited property, a commercial cash-out refi could give you the funds to buy land and start the build. Just know that commercial loans work a little differently than residential—they look mostly at the income the property produces, not your personal income.

Some local banks or credit unions might even offer a HELOC on commercial property (less common, but worth exploring if flexibility matters to you).

Build the dream home:

For the new house, you’d likely go with a construction-to-perm loan. That means the lender covers the land purchase and build costs upfront, and once it’s finished, it rolls into a standard mortgage.

You’ll need a builder, plans, and a detailed budget, but since you’re planning to bring equity to the table, that helps a lot with qualifying.

Rent out current home:

Once you move into the new place, turning your current home into a rental is a smart move. It adds steady income and helps you hold onto a property that’ll likely appreciate over time.

If you haven’t already, you might look at refinancing that place into a fixed-rate loan to maximize your monthly cash flow.

Reuse Equity for Flipping:

Down the road, once your new home is built and has some equity, you could tap into that (via a HELOC or cash-out refi) to fund house flips. That way, you're recycling the equity you've built rather than dipping into savings or taking on expensive debt.

Final Thoughts:

You're essentially building a mini real estate ecosystem:

• Equity → Dream Home

• Dream Home → Flipping Capital

• Rentals → Cash Flow + Wealth Building

It’s a great strategy, just keep an eye on liquidity throughout the stages, especially during the build and any flip projects.

Happy to chat more if you want help sorting through the lending options or timing—it’s all doable, just takes a little planning to line up the right pieces.

Welcome to the community Tanisha, and congrats on starting your journey the smart way with house hacking! You're already ahead of the curve by looking at multifamily + down payment assistance (DPA) in Atlanta—very savvy for a first-time buyer and future investor.

Let me break down a few key areas that can help you succeed:

1. Strategy: House Hack + DPA = Great Combo

Using programs like Georgia Dream or Invest Atlanta alongside FHA or conventional financing can lower your entry costs significantly. Just be aware:

• Most DPA programs require owner-occupancy for 5+ years (or repayment if you move early).

• You can still live in one unit and rent the others, which is a fantastic way to offset your mortgage.

• FHA allows 3.5% down for up to a 4-plex, and you can combine it with certain DPA programs—just make sure the lender knows how to layer them properly.

2. Lenders: Work With House Hack–Savvy Pros

Not every lender understands:

• Multifamily underwriting (rent income, vacancy factors)

• Layering DPA with FHA or conventional

• How to set you up for future scalability (thinking 3–5 properties ahead)

Look for lenders who work with investor-minded first-time buyers, not just retail homebuyers. They'll help you structure it so you're not boxed in later with PMI or debt-to-income constraints.

Final Thought

You're making the right moves by learning and planning early. When you're ready to talk specific financing options—like FHA vs. HomeReady vs. DPA layering—I'm happy to walk you through what it might look like in 2025's rate environment.

Feel free to reach out directly if you want to go deeper on lender selection, multifamily analysis, or just to keep each other accountable. You're on the right path!

Great question—and one that comes up a lot as investors start scaling their portfolio!

Yes, it's definitely possible to take out one blanket loan (also called a portfolio or cross-collateralized loan) that’s secured by multiple properties.

Let’s break down the pros, cons, and when it makes sense:

What Is a Blanket Loan?

A blanket loan allows you to finance multiple properties under a single mortgage. Instead of having 4–5 separate conventional or DSCR loans, you'd have one lender, one payment, and one set of terms covering them all.

Advantages:

• Simplified Management: One payment, one servicer, one maturity date—streamlines your bookkeeping.

• Potentially Better Terms: Some lenders may offer more competitive rates, especially for larger balances ($500K+), since you're giving them more collateral.

• Equity Leveraging: You might be able to tap into the combined equity of the properties for cash-out or future purchases.

• Higher Loan Amounts: Works well if individual properties might not qualify alone due to lower cash flow or appraised value.

Things to Watch Out For:

• All Properties Tied Together: If one underperforms or has an issue, it can affect your whole loan—harder to sell off one property without the lender's blessing (unless the loan includes a release clause).

• Fewer Lender Options: Not all banks or credit unions do blanket loans. Typically, you’re working with portfolio lenders, private lenders, or commercial banks.

• Potential for Recourse: Some blanket loans require personal guarantees or recourse terms—even if the properties cash flow.

Best Fit Scenarios:

• You’ve got 4–10+ rental properties and want to consolidate.

• You want to unlock equity across multiple homes to reinvest.

• You’re scaling and need flexibility beyond conforming loan limits or DSCR constraints.

If you're mostly holding these as long-term rentals, I'd recommend looking into commercial lenders, small local/regional banks, or private lenders that specialize in rental portfolios. Each will have their own seasoning, LTV, and DSCR requirements, so it's worth shopping a few.

Happy to walk through what that looks like in today’s market or how to prepare if you're considering this route in the future—just let me know!

Hey Carissa — love the detailed breakdown, and you’re clearly thinking through this like a pro, even as a first-time investor. You’re juggling the right variables: liquidity, leverage, and cash flow timing. That’s the key to doing your first deal right.

Let’s walk through each of your options and how they align with your goal of a long-term rental (LTR) out-of-state:

Option 1: HELOC — Great for Flexibility

This sounds like a strong offer for a few reasons:

• 6.5% fixed intro rate = solid hedge early on

• No upfront or hidden fees

• Interest-only structure lets you control cash flow until rent kicks in

• You don’t tie up your cash — gives you room for capex or reserves

Strategic Tip: Use the HELOC as your down payment source, then finance the rest with a conventional or DSCR loan. That way, your primary mortgage stays untouched, and your HELOC gives you leverage without draining savings.

Option 2: Conventional Loan — Best for Long-Term Stability

If you're buying a turnkey or light rehab LTR and want lowest possible monthly cost long-term:

• A conventional 30-year fixed gives you locked-in rates and predictable payments

• Downside: Yes, you're on the hook for P&I immediately, even if it's vacant

• But if your equity/down payment is strong, you can cover that initial window using your HELOC or reserves until rent flows in

If you and your fiancé have strong credit and DTI, you’re likely to get better terms than many investor-specific loans. Just make sure it’s titled in both your names if you both go on the loan.

Option 3: Use Cash — Least Risk, Least Leverage

• Using your HYSA/CDs can make the deal stress-free and get you better pricing with sellers (cash closes move fast)

• But: It kills your liquidity and limits scalability

• In an inflationary market, your cash is losing purchasing power unless it's working for you

A smart hybrid: Use cash for down payment + closing, finance the rest with a loan (conventional or DSCR), and keep the HELOC untouched as a backup reserve or for rehab funds.

My Recommendation: The “Hybrid Stack”

Based on your situation, here’s a strong game plan:

1. Use the HELOC for the down payment (this lets your cash stay liquid and interest-only eases the early cash flow drag)

2. Finance the rest with a conventional loan (fixed rate, long-term hold benefits)

3. Keep your cash reserve as a safety net for capex, vacancy, or a second deal

4. This gives you:

• Flexibility (via HELOC)

• Stability (via 30-year mortgage)

• Liquidity (keep your cash!)

Let me know if you’d like help modeling this strategy with numbers or seeing how it would shake out in one of your target markets. Happy to walk through it!

First off, hats off to you both — knocking out $2,500/month in debt takes serious discipline, and now you’re in a strong position to redirect that momentum toward ownership and stability for your family. Let’s talk through your options with a low down payment focus:

 Top Loan Options for Buying with Little Down

• Down payment: Just 3.5%

• More flexible on credit and debt-to-income ratios

• You can use gift funds for the down payment

• Allows multi-family (up to 4 units) if you live in one — great if you’re house hacking curious

Example: For a $300K home, you'd need ~$10,500 down (plus some for closing costs, which can sometimes be covered by seller credits or down payment assistance)

• $0 down for eligible rural areas

• Income caps apply, but many suburban areas still qualify

• Great for families looking to buy just outside city centers

• Fannie Mae’s HomeReady and Freddie Mac’s Home Possible

• Designed for first-time or low-to-moderate-income buyers

• Lower mortgage insurance costs than FHA

• More favorable if your credit is 700+

 My Recommendations for Your Situation

Since you’re just starting to build savings, here’s a simple 3-step game plan:

 Step 1: Get Pre-Qualified Now

• Even with low savings, a good loan officer can help you build a plan — including eligibility for down payment assistance programs in your state or county.

• Knowing your price range helps you set a realistic savings target for the next 6 months.

 Step 2: Use the Debt Snowball Savings Shift

• Start setting aside the $2,500/month you were putting toward debt — by November, you could easily have $15K+ saved, which opens up all low-down options.

 Step 3: Explore First-Time Buyer Programs Locally

• Many cities and counties offer grants, deferred second mortgages, or closing cost help if you take a first-time homebuyer course or meet income limits.

Would you like help finding what’s available in your specific area? I can do a quick check and point you to the best local resources too. You're in a great spot to plan ahead — this next 5–6 months can put you in a strong position to close before your lease ends.

Hey Matt — sounds like a great next step in your investing journey! Making the move from 1–4 units into 5+ unit multifamily is a solid way to scale, and it does open the door to a different financing world — mostly commercial or asset-based lending.

Let’s walk through what you need to know:

 Financing Options for a 7-Unit Property

• Typically offered by local/regional banks or credit unions

• Loan based on property performance (NOI/DSCR), not your personal DTI

• Terms: Usually 5–10 year fixed with 20–25 year amortization

• Down payment: Typically 20–25%

• May require a personal guarantee unless it's a non-recourse loan

• Some DSCR lenders offer programs for 5–8 unit properties

• Loan is based on Gross Rents vs. PITIA (debt coverage)

• No tax returns or income verification — just property cash flow, credit score, and reserves

• Great for experienced investors who want to scale without personal income limits

 Documentation You’ll Likely Need

Here’s a standard set of docs to prepare for either commercial or DSCR-style financing:

• Rent roll (current leases, even if month-to-month)

• T-12 or last 12 months of expenses (if available — pro forma if not)

• Purchase contract and seller disclosures

• Appraisal (ordered by lender)

• Credit report (680+ usually needed for DSCR, higher for bank loans)

• REO schedule (all properties you currently own)

• LLC docs (if buying in an entity)

• Resumes or investing experience (especially for first 5+ deal)

• Market rent comps (if you’re planning to increase rents)

• Rehab scope & budget (if value-add)

• Exit plan (hold/refi/sell — some lenders like seeing your strategy)

•  Quick Tips:

  • DSCR lenders have varied criteria, so shopping lenders is key (some want 1.20 DSCR, others will do 1.00)

  • Start prepping your property package now, even if you don’t have an accepted offer — it speeds up approvals

  • If you plan to BRRRR or refi later, make sure you're buying at a price where improved NOI justifies the future value

Happy to help you put together a sample loan package or connect you with lenders who work with 5–12 unit properties all the time. Let me know your goal — cash flow, refi potential, long-term hold? That helps fine-tune the best fit.

Hey Jack — first off, thank you for your service, and kudos on already stacking experience in both direct ownership and LP positions. You're navigating a unique hybrid opportunity with this VA assumption + gap financing model, so let's walk through the best options to minimize your out-of-pocket (OOP) while protecting long-term upside.

Strategy: Blend of Negotiation, Creative Financing & Leverage

• If the seller is motivated (property has been sitting 4+ months), explore seller carryback for some or all of the gap.

• Example: Seller carries a $40K second at low interest (or even interest-only), allowing you to minimize the size of any outside second loan

• Seller carrybacks don't count toward your DTI and can be creatively structured.

• If you have equity in a primary residence or investment property, a HELOC could fund the gap:

  • You keep the VA 2.5% rate untouched

  • HELOCs are interest-only and flexible

  • You preserve liquidity in retirement accounts

This is often cheaper and easier than the 8.5% fixed second your lender offered.

• Depending on your income and assets, you might qualify for a DSCR second or personal unsecured LOC from a credit union or fintech lender:

  • These can fund the gap without being tied to the purchase property

  • May offer better terms than 8.5% and no origination points

  • Fast funding and less red tape

Example Hybrid Stack

Let’s say you negotiate purchase down to $340K:

• $260K via VA Assumption @ 2.5%

• $40K seller carry at 5%, interest-only

• $40K from a HELOC on another property

• Total cash OOP: ~$0–10K (closing + reserves)

You’re in a powerful position as a buyer right now — VA assumptions are rare, and your seller may already be feeling the clock ticking. Leveraging low-interest tools (seller carry, HELOC, or DSCR seconds) to bridge the gap creatively is 100% the right mindset.

Want help modeling this scenario or connecting with lenders who do investor-friendly seconds or gap funding? I’m happy to assist!