Hello from Western Massachusetts
Hello,
I'm from Northfield, Ma and have been lurking the forums for a little while now so figured I'd make an introduction to see whos near me in Franklin County. I've been reading and learning as much as possible about investing and have been saving for a down payment on my first investment. Id like to find Investor friendly agents local to me if possible. I am about 45 minutes west of Springfield. I've been running calculations on multifamilys around the Greenfield area and just recently have been finding a few cash flow property's so I'm thinking its time to go talk to a few local banks about preapprovals.
I have quite a bit of equity built up in my primary so I've been trying to read up on pro's/con's of using a HELOC for the down payment as long as the property cash flows including the HELCO payment. Has anyone used this strategy?
Hope to hear from anyone local.
Welcome to BiggerPockets, Timothy! You came to the right place for information!
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@Timothy Allen everybody uses HELOCs. Just be sure you’re numbers are right.
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Welcome! HELOCs are great as their rate is much less then many other options
Welcome @Timothy Allen I actually choose to do a cash out refinance on one of my properties to pull the money out and be locked in at a rate, I’m aware most HELOCs have a variable rate and in this market who knows what it will do. But getting in sooner then later is always best. Analyze deals constantly till you find the right one.
Quote from @Karl Denton:
Welcome @Timothy Allen I actually choose to do a cash out refinance on one of my properties to pull the money out and be locked in at a rate, I’m aware most HELOCs have a variable rate and in this market who knows what it will do. But getting in sooner then later is always best. Analyze deals constantly till you find the right one.
I thought about that as well. Interest rates are climbing and I'm locked in real low on my primary. I'm also worried about starting a new mortgage all over again as I'm at the point where I'm paying less interest and more principal due to my amortization schedule. I'm not sure if that's the right way to think about it or not?
That's a great way to think . The rates yesterday were 6.5 to 7. So you would be starting a new mortgage with probably double the interest rates. That's why I like HELOC now. Yes they tend to be variable rates the one I used before was a much lower rate.
So it's been 3 months since my introduction and I finally have my first multifamily under contract and possibly making an offer on a second!! I chose Pittsfield, Ma for my market and will be working with property management as I'm about 1 1/2 hours away. Pretty excited to get started
Welcome to BiggerPockets Timothy and best of luck investing!
Quote from @Timothy Allen:
Hello,
I'm from Northfield, Ma and have been lurking the forums for a little while now so figured I'd make an introduction to see whos near me in Franklin County. I've been reading and learning as much as possible about investing and have been saving for a down payment on my first investment. Id like to find Investor friendly agents local to me if possible. I am about 45 minutes west of Springfield. I've been running calculations on multifamilys around the Greenfield area and just recently have been finding a few cash flow property's so I'm thinking its time to go talk to a few local banks about preapprovals.
I have quite a bit of equity built up in my primary so I've been trying to read up on pro's/con's of using a HELOC for the down payment as long as the property cash flows including the HELCO payment. Has anyone used this strategy?
Hope to hear from anyone local.
Hi Timothy, I invest in the Berkshires as well. If you are looking for an investor-friendly agent, look no further than @Cory E. - he's the best! You can DM me for contact info. Good luck in Pittsfield.