All Forum Posts by: Colby Dorris

Hey An! It sounds like you're in a great spot to take the steps to acquire your next property. A lot of investors utilize HELOCs in order to grow their portfolio and its helpful that you have additional assets set aside to strengthen your file. I'd be more than happy to jump on a call to go over the three plans you outlined in more detail and maybe even throw out some additional options you may qualify for. 

While that does sound high, I would echo what Patrick mentioned about the price. A lot of costs are fixed, so when your price is lower then the percentage of costs will be higher. 

Welcome, Ethan! You've chosen a great resource and a great market! I'd be more than happy to connect and answer any financing questions you have. I'm local to Memphis and have extensive experience helping investors all over the country! 

Hi Sino! I think house-hacking is a great idea and I would be more than happy to help you with the financing. I can offer both conventional (Fannie Mae, Freddie Mac) and government (FHA, VA, USDA) options to help make it happen!

Welcome to the community, Denis! You've chosen a great place to get started. Feel free to reach out if there's any financing questions I can help you with! 

 Forever is a long time. You want to show the credit bureaus that you're using your line(s) of credit but you also want to limit the amount of interest you're paying. I'm not saying you should always carry a balance, but it doesn't hurt to show a small balance periodically. Try it for a couple months and see how your Credit Karma score changes. 

 Yes, that's exactly right. 

Hey Eric! Credit scores can be an interesting phenomenon and I'm convinced that no one fully knows how they work. However, the person you spoke with has a good point. The credit bureaus report your score once per month, not every day. So if you pay off the balance every month on the first but the credit bureau reports on the second, then it might look like you're not using your credit and therefore doesn't have much of an effect on your score. It's important to keep your utilization under 30% of the credit line and it might be a good idea to show a small balance periodically. Obviously you want to avoid paying interest when you can, but you could see some improvements to your score by showing a small balance. 

Hey Matthias! It certainly sounds like you're setting yourself up for success! Depending on the specific Cap-Ex on the Triplex, we might be able to remove that when calculating your income and either improve the loss or actually show some income. As with most answers, it can depend on a few factors. As for the 2-year rental requirement, that's not a guideline we use. As long as it's reported on your latest tax return then we can evaluate it for income. Feel free to reach out and we can talk more in-depth to see what the options might be. 

Hey Will! Little Rock has been a popular market for investments for some time now. @Taz Zettergren might be able to share some insight on what he's seen over the years.