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?
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.