I bid on two separate homes with Auction.com and won both bids. One home is for 22.5K and the other is for 25.5K. I've paid 2.5K EMD for each property. I am scheduled to close the 1st week of October. I plan to use my HELOC to purchase and renovate one of them and refi 6 months later. For the second home, I plan to use a personal loan from USAA to purchase and reno. The ARV for both homes is around 75K fully renovated. I will also use the BRRRR process on this one after 6 months of seasoning.
I am looking for some advice or suggestions on how to calm my nerves considering that I will have to carry the HELOC and personal loan 6 months while waiting on seasoning. I am confident I can rent them both out for 800.00 after renovated. They are both 3/2's in Columbus GA.
This is my first deal and I am shaking in my boots!
@Karam A Tascoe You can cash out one of the property( using HELOC) before 6 month after finishing rehab but I don't see any benefit according to information you provided. If you will wait you can cash out higher equity.
@Karam A Pascoe Yes, you should wait to get higher cash out equity.
@Karam A Tascoe what are your reno numbers? Are you confident you will be approved for the refi loans after the seasoning period? Lastly, I operate here in Columbus so shoot me a PM or give me a call to discuss the location of the properties. Just want to make sure they will support you in achieving your goals. - Dave
@David Goings I will message you my phone number and the addresses so we can talk about it and maybe discuss some other properties as I am focused on Columbus and middle GA. My Reno numbers are solid. My Contractor an I visited both properties and he provided the quote for services and materials. I cat guarantee the Refi numbers its pure speculation based off of comps in the areas and previous sold prices
@Karam A Tascoe yes its based on comps but I am more referencing your bank-ability. Credit, DTI, collateral, etc? If not its worth a call to various banks as part of due diligence.
PM'd you further info. @Karam A Tascoe
Sounds like I need to expand my area to Columbus. Congrats!