I'm wanting to start my fist deal, but my down payment would be from a HELOC from my primary residents. After doing the numbers, my cash flow would be $150- $190 per month. That is after NOI+mortgage+HELOC. Its my first deal and I'm getting the shaky leg syndrome. Any comments would be greatly appreciated.
I did not see vacancy(5-8%),& Maintenance (5-10%) in your analysis
Do you intend to self-manage it? otherwise, property management (typically 8-10%)
Sorry guys. I didn't mention this , but, in the NOI I included 7% for Vacancy, 8% repairs, and 10% for property management. I do plan on managing the property myself, but I wanted to account for the fact that someday I would like to pass that on. What I'm worried about is getting myself extended (leveraging) so far with the HELOC.
I've not done a HELOC before. What's the opinion on going with big bank, local bank, or credit union?
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