All Forum Posts by: Heath D Wallace

First off—congrats on getting to the finish line with your first BRRRR. That's a huge milestone, especially if you managed the rehab and leveraged a HELOC efficiently.

As for your next move: trying to acquire a future primary residence while you're still in the middle of refinancing can be tricky—but there are some paths worth exploring, if structured carefully and conservatively.

Here are a few creative, but grounded, ideas for the down payment:

1. Cross-collateralization (or a blanket loan):

If the equity in your BRRRR is strong post-refi, some portfolio lenders may allow you to use that equity as security toward the down payment on the new property—without needing to actually pull cash out.

2. Seller financing:

Not always available, but if the seller owns the home free and clear or is open to flexible terms, you could negotiate a small upfront payment and structure the rest as an interest-only note for a year or two. This buys you time to build equity elsewhere or increase reserves.

3. Private money/partnership equity:

If the new property is a solid long-term play, consider bringing in a partner for the initial down payment—especially if they’re looking for stable, passive exposure and you’re managing the asset. Offer a fixed return or equity share upon refi or sale.

4. Delay and build liquidity:

Sometimes the best move is not to stretch too thin. After you refinance and stabilize your BRRRR, use that cash flow and freed-up HELOC to position yourself stronger for the next opportunity. Deals will always come—but staying liquid gives you negotiating power.

Not a big fan of the "Creative push" out there right now as anything “creative” should still pencil out conservatively which is not being taught. Don't let the excitement of opportunity outpace your margin of safety.

 Joe, That is excellent advise. A trust doesn't necessarily have a situs, so it could be anywhere, but you "may" want to have a situs in it like "formed under the laws/statues of the state of Texas.

And Heath, Why do you need to move it to Texas? Because the property is in TN, that state will still govern the laws regarding it, but a trust makes a lot of sense.

@Heath D Wallace your State is the one who charges for LLC's. I'm in California and yes, they charge $800 and that is why I use a land contract that is owned by another LLC. If your second LLC is owned by your first LLC, then all the income and expenses flow there. Why would your CPA charge more? It would not be a separate return.

Good Investing...

@Heath D Wallace check with an attorney, but if you do that then you have two properties at risk under one LLC. Why not create a different LLC that is disregarded for tax purposes and is owned by your Texas LLC. If you are really paranoid and want privacy protection then to place the property in a land trust that is owned by your new LLC, that is owned by your Texas LLC.

Good Investing...

Appliances help rent the house.  You can't beat a stainless fridge and stove from Cosco.  

They have the best pricing, and they deliver for free.  If you are not a member, the appliance you buy for this one property will more than cover your cost 

washer dryers can be used.  I like the old top loader washers they work better 

As an investment agent in Tennessee, I would. Most rental properties around that area have the appliances added in the property (except Washer/Dryer, now that can be up to you). Honestly, I would just market your rental property saying that it comes with the house, so your tenants can know upfront that they do. That way, if they do have appliances, its on them on where to store their appliances.