Cash Out Refi- What questions to ask

Starting Out
8yFollow

Cash Out Refi- What questions to ask

Matt B.
Blue Point, NY · Member since 2015 · 88 posts · 31 votes

After listening to the @Brandon Turner webinar about buying your first investment in 90 days I'm inspired to take action but need advice.

I have bought and sold mhy personal residences in the past but want to purchase my first investment property/vacation rental using the equity from my current home.  

- If I were to do a cash-out refi in NY to buy an out of state property what questions do i need to ask? 

- Are there alternative funding options that are better?  

- The area I am looking in allows for summer beach vacation rentals as well as academic year rentals for the nearby college, is anyone currently doing something this and if so, how early are you marketing the property? How difficult is it to keep it occupied?

- What else should be aware of before starting this?

Any help is greatly appreciated

0Reply
17 views

6 Replies

Jump to latestLatest
  • Antoine Martel
    Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes
    8y

    Matt

    Sounds like you have a good plan ahead and I hope that you can accomplish your goal. 

    The property management company will handle the marketing of the property to get it rented out and will handle everything on the ground for you. The key is to find the right PM team. 

    0Reply
  • Brent Coombs
    Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    8y

    @Matt B., the first thing that springs to my mind is: ask for their HELOC Officer. How much of an Equity Line Of Credit will they give you against your own Home? [How you spend that HELOC should be completely irrelevant to them].

    The only thing they should care about is: can you afford the repayments? What will your Debt To Income ratio become?

    Then once your HELOC is granted, you only start paying interest on the amount you draw out against it!

    You could leave it sitting there UNTIL you find the right deal. But, beware of temptations to spend spend spend...

    0Reply
  • Jimmy MurrayBusiness Member
    Investor · Warwick, RI · Member since 2013 · 220 posts · 119 votes
    8y

    As @Antoine Martel mentions. Finding the right property manager for you is going to be key to your strategy. You want to make sure you have a strong cultural fit with your PM and that you both share similar investment objectives.

    [email protected]401-829-1533
    Lyon Property Group4.5632 Reviews
    WebsiteView Page
    0Reply
  • Matt B.
    OP
    Blue Point, NY · Member since 2015 · 88 posts · 31 votes
    8y
    Thanks everyone, I appreciate the fast response!
    0Reply
  • Antoine Martel
    Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes
    8y
    Originally posted by @Jimmy Murray:

    As @Antoine Martel mentions. Finding the right property manager for you is going to be key to your strategy. You want to make sure you have a strong cultural fit with your PM and that you both share similar investment objectives.

     A bad property manager can make your life a true nightmare!

    0Reply
  • Jimmy MurrayBusiness Member
    Investor · Warwick, RI · Member since 2013 · 220 posts · 119 votes
    8y

    @Antoine Martel unfortunately it sounds like you are speaking from experience. Screening a property manager is just as important as screening tenants!

    [email protected]401-829-1533
    Lyon Property Group4.5632 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free