All Forum Posts by: Gerald Pitts

on my first rental.  Fixed rate, but the rate was a little higher at 5.75.  I didn't know much about cashout refi at the time.  I would probably opt for the refi over the HELOAN today due to the lower rate.  If anything, the HELOAN closing costs were a lot lower, but that was it.  

@Ryan J. Stout

Hey! Yes, I actually used a HELOAN 

@Shaun Weekes

Thank you!  I do rest a little easier with the refi.  Another temptation of heloc is 90% ltv.

I'm trying to wrap my head around whether a HELOC is a good idea for an investment property. I applied for a HELOC and got a "counter offer" for a HELOC - Interest Only. Is this a good strategy to use for making down payments on rentals? I've only done cash out refis in the past, which are expensive upfront with closing costs, and I can't keep "refilling" the money available like a heloc, but seem much more straightforward.

Should I keep trying for a HELOC that is not Interest Only?

Here are the terms offered to me:

ELOC not to exceed $ 77,800 at 6% APR. This is a variable rate that will change quarterly based on prime plus 0.5%. The minimum monthly payment will be the finance charges due.

Interest only.
15 yr term, then Principal balloon payment of any balance, If you just pay minimum. Can refinance at that point.

oh, wow, ok, cool.  Will look into that, as well. 

Oh ok thanks, @Carl Pickens.  Just contacted them. 

Thanks, @Chris C. I've heard that can be a pain.  How was it for you?

Any tips on finding a lender that can loan on on a property with more than one dwelling?  This is a deal in Duncan, SC.  

Thanks!

Talk to a lender, and tell them what you wanna do. They will consider your debt to income ratio, and let you know what's possible.

I've been enjoying these updates here and there, and appreciate the education.  Sorry to hear this, Roberto.