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?

@Drew Wood Great initiative and goals (Getting out of the 9-5 is probably why most of us are here!)

Then, I usually have my contractor go with me on the initial showing.

Thanks for responding Will.I don't think I made myself clear in the initial post though.

General Contractors, is there one particular software or app that you use for lead management from initial contact through estimating and ultimately invoicing and communication with the client?

End Goal - This is usually something like $10,000/Mo. income, in present value dollars.Time Frame - The shorter your time frame, the more initial capital and credit you will need.LocationLocation is the most important decision you will make, not the property.

Per usuals on first flips it took longer and we blew our initial budget however it sold for more money than we anticipated when we purchased the property, so we still made a decent profit.What made you interested in investing in this type of deal?

@KG Morgan I’d initially keep looking in your own market particularly if you might self-manage your first few properties.

On one hand we bought the property, for all its risks and all its benefits and on the other, it was initially owed to the previous owner but perhaps was one of the reasons they chose to sell.

@Hayden Wright higher cap rate is not always better, capture initial equity through value-add, reserves should be substantial and you will likely use them, if you buy off of a long-time owner be sure to budget for insurance and property taxes to be a lot more than they’ve been paying, buy in an area where rents and property values are going up (good market fundamentals like lots of jobs in diverse fields, affordability (wages can pay the rent), population growth, good schools, low crime etc.).