All Forum Posts by: Ethan Adams

@Justin Phillips

Thanks Justin! Great advice and I appreciate your help confirming my math.

I was concerned about financing both the down payment and the balance of the house. I may explore a few more options as well to minimize my carrying costs.

Thanks!

@Dave E.

Thanks for the advice, that definitely makes sense.

Aside from hard money or asking friends and family, are there other avenues to accessing capital for down payments you like?

I’m just getting started, looking for multi family rentals to buy and hold. House hacking is not an option but I can get a nice 30 year fixed at roughly 4% through my credit union with a 25% down payment.

In order to handle the DP, my plan was to open a HELOC on my residence and use that. My credit union also offers this and has a promo where if I take $20,000 as a disbursement immediately, they cover closing costs.

My question is this - I don’t have a property yet to purchase and it could be a few weeks or months to find the right one. Is it smart to take the $20,000 and start paying interest on it for that amount of time?

The CC would be a few hundred dollars according to the bank.

Thanks!

Investment Info:

Single-family residence buy & hold investment in Kenosha.

Purchase price: $148,500
Sale price: $174,500

Purchased with a plan to live in and update over 5 yrs and then sell for a profit. Didn't really understand real estate investing at the time but knew I was in a good area and it was a good time to buy. Got married 2 yrs after moving in and we decided to upgrade to a newer place in town.

What made you interested in investing in this type of deal?

Mainly to build equity in a property as opposed to paying rent. I was by myself and I live frugally so I thought I could work on improvements over time and sell the property for a profit.

How did you find this deal and how did you negotiate it?

Zillow/Realtor

How did you finance this deal?

30 year fixed Mortgage

How did you add value to the deal?

I didn't really, the market to care of that for me. I happened to be in the right place at the right time. I made minor repairs to mechanicals and replaced an aging garage roof but didn't really invest much else.

What was the outcome?

17% increase in sale price.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

If you're looking to buy or sell in SE Wisconsin, Vanessa Taylor is the person you want to work with. She did amazingly well for me and I plan to bring her in on most of my deals.