Seeking Advice Before Buying My First Investment Property

[Tony Ramirez]

Hey BP Family,

I'm new to real estate investing and currently looking to purchase my first investment property. I live in Florida, but I'm focusing on out-of-state markets to get the best value for my money. Right now, I'm working with a realtor in Alabama to help me find the right deal.

Here's my current strategy:

• I opened a HELOC on my primary home to fund either a cash purchase or a down payment. My goal is to leverage my home's equity instead of using my personal savings.

I have a few questions for those with more experience:

• Does using a HELOC for my first investment make sense, or are there risks I should be aware of?
• Would you recommend using the HELOC for a down payment and financing the rest, or purchasing the property with cash?
• I often hear people say to "underwrite conservatively." What does that actually look like in practice?
• Is anyone willing to share how they underwrite a rental property or point me toward a good underwriting template or process?

Lastly, I'm looking for a real estate mentor or advisor who wouldn't mind answering questions as I learn. If that's something you'd be interested in, I'd really appreciate it if you sent me a message.

Thanks in advance—I appreciate any advice from those who've been through this before!

[Alfath Ahmed]

Quote from @Tony Ramirez:

Hey BP Family,

I'm new to real estate investing and currently looking to purchase my first investment property. I live in Florida, but I'm focusing on out-of-state markets to get the best value for my money. Right now, I'm working with a realtor in Alabama to help me find the right deal.

Here's my current strategy:

• I opened a HELOC on my primary home to fund either a cash purchase or a down payment. My goal is to leverage my home's equity instead of using my personal savings.

I have a few questions for those with more experience:

• Does using a HELOC for my first investment make sense, or are there risks I should be aware of?
• Would you recommend using the HELOC for a down payment and financing the rest, or purchasing the property with cash?
• I often hear people say to "underwrite conservatively." What does that actually look like in practice?
• Is anyone willing to share how they underwrite a rental property or point me toward a good underwriting template or process?

Lastly, I'm looking for a real estate mentor or advisor who wouldn't mind answering questions as I learn. If that's something you'd be interested in, I'd really appreciate it if you sent me a message.

Thanks in advance—I appreciate any advice from those who've been through this before!

Yes you can use a HELOC to do your first deal. A lot of investors use their HELOC money to do BRRRR deals out of state in the midwest. Common for cali and FL investors to buy in the midwest.

I've got 30 rental units in Columbus and help oos investors buying here. Your other option is using hard money then refinancing DSCR.

You want to buy brrrr deals at 75% ARV and make sure they are in C+ locations or better. Layout sells deals!