All Forum Posts by: Allen Tracy
Allen Tracy has started 27 posts and replied 182 times.
Post: HELOC and Turnkey Investing Advice
- Chatsworth, CA
- Posts 190
- Votes 224
Originally posted by @Remington Lyman:
@Allen Tracy What markets were you looking at in Ohio? There are a ton of multi family properties in Columbus, Ohio
Sorry for the late reply, picked up a cold over the last week. I'm still very new to the Ohio market and don't know much about the area. I've heard Cleveland and Toledo might be good areas but could be interested in Columbus as well. I see you're a Realtor, property manager, and investor in that area so you must know the market very well there.
Post: Rich Dad Poor Dad - Do you rent or own your primary residence?
- Chatsworth, CA
- Posts 190
- Votes 224
I purchased a townhome in LA six years ago for $405,000. After four years of owning it I sold it for $535,000. So in those four years I got back the downpayment I originally put into it, the principal that I had paid down, and the appreciation. I took that $235,000 that I netted from that property and purchased a larger home that I now rent out to film studios and will also be pulling a HELOC out to purchase my rental properties.
Without purchasing that first starter home I wouldn't have been able to do any of this. My parents own a ranch, vacation home, a hotel, a bar, and a few other investment properties and they really pushed me to purchased my first home to learn about home ownership and build equity.
Post: HELOC and Turnkey Investing Advice
- Chatsworth, CA
- Posts 190
- Votes 224
Hey @Amber Smith, I'm actually originally from Bakersfield (well Buttonwillow). My family has a farm in Buttonwillow but we also have some cattle out in Hereford, TX so I've flown in and out of Amarillo a few times. I've narrowed down my HELOC lenders to four places, just trying to pick one based on numbers, interest only or not, and fixed rate or not. Good to hear the fixed rate option worked for you.
I think the BRRRR method (flip and hold) would be the best use of my HELOC so it would either be a BRRRR+Turnkey (which I wouldn't make as much money on) or a BRRRR where I go out and build a team myself. I plan on paying all cash for a property, cash for the remodel, then refinancing to pull the majority (hopefully all) of the money I put into it back out to pay off the HELOC. I'm hoping for the process to take 3-6 months, then rinse and repeat multiple times after that.
I was originally looking at multi family properties in Bakersfield to invest in since I could go see them in person very easily but I think my money might go father over in Kansas City, Indianapolis, Memphis, Ohio, or Charlotte. I also have a newborn at home and sometimes work long hours so a property management company would be a must for me.
Do you do most of your investing in Bakersfield?
Post: Fire/Water Damage Truck in front of property on Google Maps
- Chatsworth, CA
- Posts 190
- Votes 224
This is the first time I've ever seen this! A Fire/Water damage restoration truck parked right in front of an investment property. Hopefully it would be declared through the buying process but kind of funny (not for the seller) how it's pretty much blocking the actual property.
2806 Bauernwood Ave, Baltimore, MD 21234
Post: Does a HELOC affect your property Taxs
- Chatsworth, CA
- Posts 190
- Votes 224
Happy I found this thread. I'm about to take out a HELOC and was just wondering this myself. Thanks for the info.
Post: HELOC Lender Recommendations
- Chatsworth, CA
- Posts 190
- Votes 224
Any recommendations on HELOC lenders? Looking to use a HELOC on my primary home for BRRRRs. Will most likely need $100k-$250k. I have over $400k equity in my primary home so hoping it should be easy enough.
I’ve read good things about:
Connexus
Bank of America
Beth Page FCU
I think I can get a decent rate from Chase since I’m a member with them and they give additional percentages off for being with them.
Post: HELOC Lender Recommendations
- Chatsworth, CA
- Posts 190
- Votes 224
Originally posted by @Orlando Perez:
@Allen Tracy
Hi! Is it a primary or investment property you are trying to take out a HELOC. If so, Fremont Bank and California Coast Credit Union are good for investment properties and primary residence as well.
I'm taking the HELOC out on my primary for an investment property. Thanks for the recommendations.
Post: HELOC Lender Recommendations
- Chatsworth, CA
- Posts 190
- Votes 224
Awesome, great advice, thanks!
Post: Tripex Los Angeles - [Calc Review] Help me analyze this deal
- Chatsworth, CA
- Posts 190
- Votes 224
Originally posted by @Seth Borman:
Originally posted by @Allen Tracy:
Appreciation is probably better in Los Angeles but cash flow and return on investment will be low here. Your calculations show 3.55% return on investment. This is quite a bit lower than just putting your money into the stock market.
You need to consider earned equity/principal payoff. Every time you make a mortgage payment you are creating equity than can be accessed down the road. That's why multi year models are important.
Very true. I tend to focus on cash flow these days since I'm nervous about a bubble burst in the next 5-10 years which could greatly reduce or completely wipe out most of the equity. That being said as long as you plan on holding it long term you should be able to recoup any losses. The last bubble burst didn't last very long at all. And investing in markets like LA may be very difficult to get good cashflow so equity/principal payoff would be important.
Post: HELOC Lender Recommendations
- Chatsworth, CA
- Posts 190
- Votes 224
Any recommendations on HELOC lenders? Looking to use a HELOC on my primary home for BRRRRs. Will most likely need $100k-$250k. I have over $400k equity in my primary home so hoping it should be easy enough.
I’ve read good things about:
Connexus
Bank of America
Beth Page FCU
I think I can get a decent rate from Chase since I’m a member with them and they give additional percentages off for being with them.