All Forum Posts by: Daniel Z Fang

Sounds like a good plan and you’re in a fantastic cash position which provides flexibility. There are important details missing - for example, what is your ultimate goal with investing and by when do you want to achieve these goals? Beginning with the end in mind will dictate how your strategy is executed.

HELOC typically have variable interest rates that usually climb with the prime rate so you can potentially get into a bind with a large balance if interest rates begin to rise rapidly (seems unlikely in the immediate future). They're also revolving and essentially act like a credit card allowing you to draw on them and pay off with flexibility. Note that cash out refis having lower rates that are locked but you also pay closing costs which can be 2-4% of the balance.

Congratulations!! Well done

I'd suggest saving a bit more. Closing costs and reserves are important to have and those can easily run you the full 10k even at lower price points of entry. Also note that FHA loans require less money down but require you to live in the home as a primary residence for at least one year before renting out. Great work getting started!

Timing on 1031 seems stressful. I’d do a cashout refi but make sure you can cover costs with existing cash flow and then take that extra capital and put it to good use elsewhere. 

@Jamia Stevens No magic or tricks here - either make more or save more (or both!). Beware of folks who say otherwise - plenty of folks happy to sell you a shortcut. Keep at it!

@Michael Bettencourt almost finished w closing for my own refi and got quoted the same. Any lower requires points.

@Maurice Blackledge congratulations!!

@David Mills

I bought two last year from MemphisInvest and had a fantastic experience. I think turnkeys are a great way to start. You’ll need to do all your own due diligence of course. For me it was a great way to ease into real estate investing.

Hello BiggerPockets! I'm a father, husband, physician, manager, and real estate investor from San Jose. It's been two years into the real estate journey, trying to learn as much as I can. I'm primarily interested in buy and hold SFH and MF that cash flow in decent neighborhoods. Last year I picked up a couple turnkeys to start off and then got a great SFH deal in San Diego. Now I'm looking to invest out of state, hoping to pick up my first MF deal. Looking forward to networking and meeting folks here!