All Forum Posts by: Aaron Howell

That's a question that I'm not sure has a right answer.  I'd look locally if I were you and see what you think between several different banks.  

Personally, I like smaller local banks but I've had a lot of help from Wells Fargo.  Again, no right answer just whatever fits your needs.  If you choose one and don't like them you can always switch to another bank.

I think I've heard of setting up a separate account for each property.  I personally don't do that.  I have two accounts which each get deposits from several properties each.  Once you get to LLCs I think that's where you need to be specific on which account money comes from.

Hasn't sold b/c of Price, Condition, or Location.  Could be a combination of more than one of those.

The numbers look good but definitely get a home inspection so you know what you're dealing with.

I have no info on the realtor you mention.  I've used Rob McFarland with Holton Wise and he was very attentive.

The 1 to 1 ratio doesn't seem worthwhile to me.  Why even use them if that's all they'll give you ?  You could use your own money and not pay them any interest.

Most people will use equity in a property to invest with.  Do you have anything that will help you ?  

You could always convert some of your bonds and equities into cash and work with that.  If you have $2M you definitely have a nest egg to begin investing with.

What areas are you looking to invest in ?

Shop around for a bank that will do a HELOC on an investment property. You may not get a "yes" right away but you'll find one if you keep asking.

Usually the HELOC limit is about 70-80% LTV so if your property is worth $100,000 and you owe $50,000 you might be able to get a $20,000-$30,000 line of credit. I honestly don't know what they will say since you used private money but it should be something similar.

The strategy will work if you stick with it.  The problem for most people is the discipline to stick with it.  

You're looking at paying off long term interest by paying principle now which will reduce your cashflow in the present because you're paying extra to pay the HELOC balance back down. Long Game vs. Short Game.

Ideally you're income is greater than your expenses so you can pay the HELOC balance back down. You don't need to pay a guru MEGA BUCKS if you understand the concept. @Brent Coombs is right.

Another question to ask yourself is: Why do I want to pay down the mortgage faster ?  If you're looking for a refi later on down the road it may help but you're taking cash today out of your pocket you could use to put on a down payment for another property.

@Jason Meyers The bank doesn't care what you use the money for as long as you make the payments when due. Interest probably depends on the type of product you're using. Overall, I'm pro HELOC but the discipline of having it is where a lot of people go wrong.

Check out the Book on Investing in Real Estate with No and Low Money Down under the Education Tab.  You'll probably find more info in there than you want to know but its the Bible of Creative Finance in my opinion.

One thing to look at is : what is causing the mold.  If you get that handled then the total rehab you're looking at based on the picture shouldn't be too bad.

Whether it is the roof leaking, pipes, foundation, etc you get that handled and it should go away.

I agree with @Adrian Stamer.  Charlottesville is getting tougher and tougher to find deals.  Deals come and go fast and are few and far in between.