All Forum Posts by: Hanan K.

@Justin Phillips Thanks again for all the helpful information!

@Justin Phillips oh, ok. That makes sense. Is there a ratio they like to see for suitability?

@Justin Phillips Thanks for the detailed response! I think you are right. I'll start with our primary residence. Good to know that open lines of credit don't affect DTI. I read somewhere that they will typically factor in the payment as if you had the line of credit maxed out which made me nervous from a DTI standpoint. Thanks for your guidance.

Hello BP members! We are preparing to leave our W2 jobs in a few months to move into full time real estate investing. 

We have a good amount of equity in our primary residence as well as one of our rentals and we would like to take out a HELOC on each property but we plan on purchasing a few investment properties before leaving our W2.

1) Should we apply for the HELOCs First? Will this affect our DTI even if they are at zero balances?

2) Does it make more sense to buy the rental properties first?

3) Is it possible to apply for multiple HELOCs on different properties at the same time? or do we need to do one at a time?

Thanks in advance!

Yep! 

I just want to thank all of you who offered helpful advice and weren't judgmental about the situation. I'll never understand people who like to throw in their two cents when it in no way helps the person. It's so rude and not constructive. I took the advice of some of the helpful BP members and consulted with an attorney.

Thank you for the advice. That is exactly what I did.  Turns out my agent never even called the listing agent. I called the listing agent myself to confirm that he never spoke with her. She came up with that figure out of thin air. I've consulted with an attorney and my agent had a fiduciary responsibility to me and misled me / defrauded me into getting into contract by providing false information. I am not at fault. I went ahead and cancelled the contract. We will see what happens but the two attorneys I spoke with both told me I had a very good case and they do not foresee a judge ordering specific performance or monetary damages. If monetary damages are due, they would be due by my realtor or her broker as it was their mistake,