All Forum Posts by: Erik Sherburne

I've done it and happy I did. If you figure in how the loan affects you cash flow and/or if you are going to BRRR the property then you can pay back the loan (typically) without penalty. With both of those being said the return I am getting on the RE is better than if it was left in the 401K

@Joseph R.   I wouldn't be surprised if you had to analyze 50,60,70 deals to find one that is even worth making an offer on, especially when you are starting out, it gets easier to "spot deals" and/or "make deals" as you spend more time with it.   As others have said, set your criteria and stand by it.    

Looking to expand my portfolio and wondering if Frogtown is a good area. Light rail, development coming through but the homes were built over 100 years ago and there is still some crime. Anyone successfully investing there?

Curious what others see as the pros and cons of a cash out refi vs a HELOC. I'm refinancing a property now to lock in a rate and think saving some equity for a HELOC might be a good option. I have a lender that can do a HELOC at 80% LTV on an investment property. My logic with the HELOC is that I can draw from it - purchase a property, pay the HELOC down and keep a higher cash flow on that property vs pulling cash out. Then after I paid it down I have access to the HELOC again to repeat. Thoughts?

Stop analyzing and worrying about $5/month difference in cash flow and just do it.

Thomas Shaw congratulations! The first one is the toughest! Best of luck to you on reaching your goals. BP is an awesome ally to support your growth. Welcome to the community!

Thank you all for the feedback! What's interesting is that the lender I have been using actually recommended I used the other one because of the amount of financing I'm doing it would be good for me to do two.

Derrick E. @Lisa Li I am working on something similar now. I like the idea of the HELOC because once it is paid off I get the full cash flow back on the property but have the flexibility of equity to expand. Good luck Lisa!

@Ned J. Great advice and I agree. The other trick is when they do work it's tougher to hold them accountable to he quality/standard of work you want. I had a tenant do some painting once. It was ok but they splattered on the house and didn't take responsibility

Curious how much loyalty you have to a single lender.  I've worked with a few and there are a couple I really like.   I'm refinancing a property now and there are three that are giving me rates and closing costs.     Current lender can wave appraisal fee, lender I worked with on another loan can give me $500 off the next one, etc. etc.    I do believe in loyalty.  I do believe in relationships as being fundamental to success.    Do I go with the best deal?   Use the best deal on this one and the other lender on the next one?  Stick with one lender unless the numbers are way off?