All Forum Posts by: Will Stewart

I just purchased my first rental property this week. I put 20% down and my loan amount is not too bad. My question is, should I take extra from the passive income to pay the loan down faster in an attempt to acquire another property faster or just make the minimum payments and be patient? I also have recently gotten a HELOC. I have had some people tell me not to use it unless I can pay what I borrow within 6 months. Others have told me I can use it and then refinance. I am brand new so I would love different opinions. I met with my realtor and have created a 5 year plan but I would like to accelerate it if at all possible. Maybe I am just being to impatient. Any advice would be appreciated. Thanks everyone!

Thanks Zachary. I was looking at a property and the appraised value is the purchase price. I was told that was not necessarily good since it would decrease my loan value. Does that sound correct? I know I want to make my money going in and this seems like it cancels that option out.

I am new to this but can someone explain how the appraisal is reflected in loan value on a rental property that is being purchased? What is a good ratio? Thank you.

I have two meetings lined up with successful investors in my area. What are some good questions to ask them from a rookie standpoint? 

Hey everyone! I am new to real estate investing and am doing my best to learn from reading and listening. I have been approached with an opportunity to buy a duplex in a college town that is in high demand. The selling price is 310K, my realtor says it is not a bad price for the area. My question is, after running the BP property analysis, it gives about a 12-14% CoC if my numbers were correct. However, I do not have the capital necessary for a down payment. What are some approaches I can take and not get myself in over my head on payments? Thanks everyone!

It definitely helps. I had started and am in the process of finalizing my HELOC. Thanks again for being willing to answer questions. I probably need to go through the real estate rookie class! I appreciate your time!

Wale, 

Thank you for your reply. I did not realize rates may change based on the use of a HELOC. I definitely do not want to use up all of my cash on a purchase. Can I ask for a brief and dumbed down explanation of using a HELOC for down payment and then refinancing the rest of the borrowed amount? I think I understand it but I figure having it explained again can't hurt. Thank you again for your help!

I have been presented with an opportunity to purchase a duplex in a thriving college town. The price is a little more than I want to pay but as of now I have not made an offer. I have reached out to several lenders that my realtor in the area recommended and am waiting to hear about loans. My question and the advice I would seek is what is the best way to use a HELOC for this situation if I decide to do so? Is it best used for just the down payment or should I try to use more to lower the loan amount? I am still going to run the numbers on the biggerpockets calculator but would love to discuss this with a seasoned investor if someone doesn't mind. Thanks so much!!

Thank you Greg. I have been looking at a website and they throw all these terms and numbers out and I have no idea what is relevant and what isn't. Your reply helped out a lot. Thanks again.

I am trying to learn about annualized return, cap rate and gross yield percentages. I am not a numbers person so if someone could break this down on a simple level or direct me somewhere that could I would appreciate it.