All Forum Posts by: Allen McGlashing

@Sooyeon Kwon

The HELOC goes off of the appraised value and once you sign the closing document it doesn't change its like a credit card with a max limit.

I want to touch on how much you can take out though. If you have a $100k house and you put 20% so $20k down you have $20k in equity and owe $80k on the loan. You want to take out a HELOC that's at 80% LTV of let's say the houses now appraised value comes back at $120k. 80% of the $120K is $96k. since you owe $80k on the house they will only lend $96k-$80k= $16k. Minus some closing costs.

Hope this helps GOOD LUCK

@Amanda Thompson

1. So you have a couple options.

You could ask them to pay for the extra pet as you have a $25 per cat policy in the lease.

You could terminate their lease. This could be costly by getting them out and loosing a months rent. Turnover is the killer of capital.

You could ask them to get ride of the cat.

• What I believe I would do is if this is the only problem you are having with the tenant I would ask them to pay the extra $25/month and also a set deposit (if you already got one I would increase it). I would avoid going the eviction route over such a small matter. You lose time and money going that route for something so minuscule. MY OPINION.
• 
  GOOD LUCK I HOPE IT WORKS OUT IN YOUR FAVOR.
  

@John Chan 

Read the Book "long distance real estate investing" by David greene. A lot of your problems wouldn't have happened. One helpful tip is setup draws in which you follow a detailed estimate of which work will be performed and once that work is done you send out a payment. The book says 3 draws (payment) I personally like to do 4. The biggest advice to keep the contractor motivated is to give them a 10% bonus if they finish before schedule and deduct 5% if they run over finish date. I would read that book and the book "BRRRR" also by David Greene before you even hire another contractor it will save you tons of money.Yes it would be very helpful if you could let us know who the contractor is so we could stay away.

GOOD LUCK 

@Jake Gilleland 

One thing to keep in mind is you want to start big like a 4 family that way you can househack and move down to a 3 then 2 and eventually a single. They make it very difficult for you to utilize the low down payment if you start in a duplex and then try to house hack a building with more units that isn’t 100 or so miles away. That has been my experience. I went from a 3-family to a 2 family my lender said it would be hard to get back to anymore than 2 units now.

@William Zheng

Why do you have to buy 1 property at a time? Cash-out refi rates are a little higher, but do the math on how much more your monthly payment with the higher interest rate would be compared to how much capital you will be able to take out and put into another deal. If you have enough capital to put down 25% on 4 turnkey properties then I'm sure you have enough to put down 20% on 6-8 BRRRRs (obviously depending on the area). Buying more than one BRRRR at a time is more difficult than buying more than one turnkey at once, but I'm sure the reward is worth it and you can expand so much faster.

goodluck 

@Kenneth Garrett 

I agree that cashflow is probably the best to learn, but I’m following for some more recommendations.

@Andrew Gomez

Well the first thing is to not put your primary residence into an LLC for tax purposes I can go dig deeper if you want it screws up a lot of things come tax season.

Best advice is to start building credit with the LLC open up a bank account and establish a Relationship with the bank while keeping the credit for the LLC in good standing. Once you buy a property in the LLC make sure you separate your personal endeavors from your business.

goodluck 

@Brad Reiner

Some Hard money lenders fund 100% of the rehab you just have to put down 10%-20% of the purchase price. These type of loans are called bridge loans they are usually short term 6-12 months because the plan is basically for the BRRRR method once you are done rehabbing you refinance into a 30 year loan.

@Carlos Handler

Why not just take the 30 year loan out with the hard money lender? They offer low enough rates little higher than banks, but if the numbers work it's not worth losing a property over this little issue. Start with the 30 year that the HML gives you and work on your DTI then when you can refi with a bank.

@Bryan Contreras

One option could be refinance your current home that cash flows only $100/month and increase that cashflow to maybe $200/month or more and take out the rest of the equity you can put and then buy other investment properties.