How My House Hack is Opening Doors for Me [Part 2]

Question

Here's my Part 1 post in case you missed it.

Due to the appreciation of Las Vegas, NV over the past 2 years, I have witnessed my condo appreciate from a purchase price of $120k to ~$160k in just under 2 years.

I have recently found out about a strategy of using a HELOC to buy a cash flowing investment property.  Because of the competition and low cap rates experienced in Las Vegas at the moment, myself and my business parter have begun looking into other markets.

I have applied for a HELOC through Wells Fargo and have been approved for a HELOC of ~$37k.  The condo still needs to get an official appraisal.  Luckily for me, a comp down the street just sold for $180k which could mean my condo appraises for more than $160k which would increase my HELOC.

At the moment, I am currently in Cincinnati, OH looking at potential investment opportunities.  I count this as a success story because the appreciation of my condo has allowed me the opportunity to begin looking at multi families and could really jumpstart my investing career.

I now have ~$25k cash and ~$37k HELOC to invest and believe I am close to finding a multi family that will fit my investing criteria.

My business partner and I are looking to BRRR a multi family and I finally have the opportunity/capital to do so.

Craig H. · Answer

Congrats on the appreciation.  Best of luck in your search in Cincinnati.  An east side neighborhood where I invest, the prices on the last few deals I've been looking at have been outrageous.  An outdated 3 family sold for $203,000 (I bought a 5 unit for $149,000 in 2015 2 streets over) and a 4 family that rents for $700/unit is going to sell for $230,000 or higher.   Deals can still be found, but will most likely have to be sourced yourself.  Let me know if you need contacts in the Cincinnati area that can assist you.

Spencer Cornelia · Answer

@Andrew Hargreave Hopefully you're able to land it.  We're in Columbus tomorrow after traveling between Cleveland and Columbus today.  We enjoyed Cincinnati a lot.  I'm very interested in investing in the Cincy market at the moment.  Even if it is hot right now, the cash flow numbers are much better than what we're seeing in Las Vegas at the moment.

Andrew Hargreave · Answer

Welcome @Spencer Cornelia, did you just enjoy the fireworks display downtown?  I'm also in Cinci for my w2 job but also have an offer pending on a multifamily here in Cincinnati...we're hoping the seller takes our counteroffer tomorrow.  I'm here through Saturday before driving back to the Chicago area.

Love the area but it's extremely hot at this time.  I've been looking at properties for over 2 months, sadly on MLS/Realtor.com and by the time I find one and run the number on it..usually within a few hours of it going on the market, the property has already sold!

My agent found this one that's not listed yet....another agent at her agency represents the seller who mentioned he was thinking about selling...so giant stroke of luck there.

Good luck in your search!