All Forum Posts by: Craig Jeppesen

The math doesn’t quite work that way because you will have a mortgage. Let’s say you have $50K cash to buy a lot and can build a $500 k house for $350k that would give you a $100 k heloc. If you built a $150k house and got a $55k mtg you would get a $65 k heloc. So you go way more in debt to get $35k in credit. There are better ways to build equity and My guess is you are using the heloc theory to get a nicer house. If you want the nicer house do it because you want to not to invest more because you will be able to invest less. 

I would use your discounts to do brrr projects instead.

Get your agent to submit an offer, simple as that. Then start negotiating with the counters if any.

I would just buy to lock in your housing costs for 10 years and build some equity. You can make the decision to rent or sell at that time. 10 years is a long time to not own a property 

Yes a loan receivable is an asset.

You will have a gain. You don’t get to claim your entire basis on half a sell. You need to allocate your basis between the 2 properties by square footage or tax assessed value or something like that. It really isn’t a complicated capital gain question.

Congrats! Looks like a nice well taken care off home.

I think you are about 3 kids too late. She is established in your current home raising her kids. I would just be happy she doesn’t want to upgrade to something newer and bigger. I would stay in your home to keep your family in its current stable condition and work on other ways to invest like doing a brrr or do a flip to come up with a down payment or some other strategy to get you started.

Laws continuing to shift more in favor on tenants is really my only concern. I do sometimes think about how more automation over the next several years will affect tenants employability and ability to pay. I also sometimes wonder just if on a nationwide scale str properties became illegal and a new wave of inventory for both sales and traditional rentals would affect rents and home prices.

I think a lot of people get confused by a recession and a crash. Historically, this has been a very long expansion and we are due a recession but I don’t see it coming in the next year. Even if a recession hits, there will not be a real estate crash in a long time and homes values will still keep increasing due to how far we are behind in inventory from the last crash. We need lots of new homes and there is not enough subs to build fast enough. There are a lot of people wanting to buy a house right now and many more waiting on the sidelines but there is nothing for sell. There is also a lot of money looking for a higher yield as rates are so low. For those waiting on the crash I say good luck.

for me, I have enough cash ready for the next deal, but I have been outbid on my lady 3 offers because there aren’t many deals and there are plenty of investors, so I keep my investing money ready for the next offer, but any extra I am investing in the stock market by maxing out my 401k and any extra money I have is paying down my mortgage. 

I have used my heloc to buy distressed properties before. You could borrow from your 401k, refinance or sell a car, credit cards, or private money for the rehab. Personally, I like to have some cash in any deal as I am pretty conservative.