All Forum Posts by: Craig Jeppesen

You have enough to pay the hml. Yes you have money in the deal, but that happens sometimes if your numbers are not right. I would dispute the appraisal if you are sure they are wrong but guessing they are not based on your comment on comps not being updated. You are supposed to buy below market and the upgrades get you to market. Most upgrades don’t get you above market.

I love my job and plan to retire with the same company. Financial freedom does not mean you have to quit. It just gives you peace and options that is it.

It looks like closing costs are only $2k. The rest are prepaid for your escrow. If you are putting 20-25% down you can waive escrow.

When moving, I always recommend renting for 6 months while you learn the area. Having said that there really is no bad areas in IF. Ammon is a suburb of IF and is where most of the growth is happening. The RE market is still hot and people continue to move in from out of state. I don’t think you will find many live in nanny’s here in east Idaho.

I recommend Copper Creek if you are interested in buying a new home.

Basically Dave is a no risk at all guy. His plan will make you a millionaire but barely. A million net worth is nothing  exciting. Taking good solid financial risks with some leverage is the best way to build wealth. Risk does not equal risky. Also reserves, good equity deals, and market analysis basically almost eliminate any risk you will take.

If you are barely getting buy, I would sell the car you can’t afford, save up $20 k and buy a duplex where the rent will cover most if not all of your payment. That should free up more cash to pay off other debt and keep investing. Research house hacking.

Horrible advice. Interest on a heloc is tax deductible for investments.

Most financial institutions will not do a full appraisal for a heloc. They will typically do a drive by appraisal unless you request to pay for a full appraisal to take advantage of interior upgrades. Most of the time that is not necessary. 

I use my heloc for short term financing for flips. I would not use it for long term financing. Also, make sure you understand the full terms of the loan.
 

If you don’t want to pay off the loan in 5 years you will have to refinance before the end of year 5. You can use this property or any other you wish to refinance. If you don’t the bank has the right to foreclose on you. They might not and may modify the loan, but you do not want to find that out. As long as you keep your payments current, maintain a good credit score, have current taxes, a good debt coverage ratio or debt to income ratio, you should be able to refinance fairly easily. Don’t wait until the loan matures to start talking about refinancing.

It sounds like you like the rehab part. I would keep doing what you are doing but maybe on the next one instead of selling it make it a rental. Refi once the work is done to get your cash back and do another flip. Every few flips keep one as a rental. Just make sure to keep your $100k seed money to stay in the game.

What are your monthly payments on your consumer debt? That is most likely your problem. Calculate your dti ratio and do you have a low balance high PMT amount loan you could pay off. That would help your ratios.