I’m particular about which properties I will purchase in that I make sure they are upscale by my standards (I would live in them), and I believe their rents will continue to be solid and enough to cover my bills even if there is a market downturn.

I understand that industry standard is between 7 & 15% of invoices depending on the complexity of the project.

I understand that industry standard is between 7 & 15% of invoices depending on the complexity of the project.

I understand that industry standard is between 7 & 15% of invoices depending on the complexity of the project.

I understand that industry standard is between 7 & 15% of invoices depending on the complexity of the project.

I understand that industry standard is between 7 & 15% of invoices depending on the complexity of the project.

That's a big piece of property, at least by New Jersey standards.

currently HELOC rate is at 3.00%, down from 3.99% a month ago when the 6 month initial lock ended (i have over 9 years left on my draw period). now the rate is variable. the bank is hinting that the rate on the mortgage will be around 3.5% fixed. i don't qualify for traditional mortgage on my dti (but i do double my income with overtime and bonuses, and my wife will have a new income as well once we relocate) so our family friend is cosigning on the mortgage with me. the bank is writing it internally at 15yr with a choice between amortized or balloon. the building will need a new roof in about 5 years, and leaving $35k in the HELOC for that would keep me happy, so i'm willing to go up to $100k down payment if it makes sense. that would change my loan to $179k from $223,200, but also would tap any funds i might have for improving the property other than the roof, like fencing in the backyard and converting the third floor to its own unit. the new rubber roof would be more like $20-$25k but i like to be conservative. i have heard of people using their heloc to pay down their mortgage principal, which i could also do, but it seems to be a gimmick, and even if not may it be easier to just get a smaller loan amount to start?

It also seemed that the companies coming out were just lower quality with lower professional standards.

If you buy in a location where prices and rents are increasing below the inflation rate, your only option will be to decrease your standard of living over time.