All Forum Posts by: Hiron Fernando

Absolutely agree with everything said here. I see and hear people talking about HELOC on rental properties a lot. Need to make sure to have the right terminology.

Hello All,

I am currently a rental property investor, but am looking to get into Air BnB properties soon. Does anyone have a recommendation for a full service Air BnB property manager in the DFW/Dallas area?

Thanks!

Welcome! I actually am in the process of purchasing a property in Hurst, on Norwood. Good work on your intro video.

@Andrew Smith, you can also apply for an unsecured line of credit from your bank. They will usually give between $3k-$10k pretty easily.

Good luck!

No problem. I just sent you the spreadsheet!

Try to use the spreadsheet as a baseline to get started, then understand where all the numbers comes from and customize it for your circumstance. It will help you get to know your numbers inside out, which is what you want!

Good luck! Let me know if I can help in any other way.

@Christopher Silich that's good, you are doing the right thing. I would go check it out anyway, it will help you get a feel for what to look for. After looking at the property, come back and do a line by line repair estimate to figure out how much it will really cost! Then put your numbers into a spreadsheet and calculate your ROI. If you need, I can send you my spreadsheet that I use.

Good luck!

@Christopher Silich yes, I just look for stronger returns in terms of the rent to price ratio. If your cost basis is $115k (all in cost) and rents are $1095, that puts you at 0.95% rent to price ratio. All my properties are at 1.3% or higher, that's where I start to turn a profit. However, depends on many factors, run your numbers and check. These are just "rules of thumb."

@Daniel Dietz

Great question! I actually just recently did this with 4 of my properties. I agree with Ralph, going with a separate loan for each property will make the accounting easier, as well as making things easier when you go to sell, refi, get a line of credit, etc. Really, the extra cost to doing each individually is negligible.

Just my two cents. Also, great terms on the loan!

Good luck.

Absolutely, that is the right idea. I would probably assume 70% to 75% LTV for your refi though. The other thing to remember is that even though you have $135k of equity there are fees associated with getting the HELOC and the bank will likely loan you 70% to 80% of your equity.

Finally, I hope that "deal" was just an example. Just from those numbers, it looks terrible (that's my opinion, at least).

Good luck! 

@Dane Ohlen

Thanks for your reply! As they say, its always better to get lines of credit when you don't need it, than wait for when you do need it, then you'll be scrambling and won't have enough time to shop around.

I like the 75% of LTV on the commercial LOC. I just messaged you, would love to connect and share some ideas!

Thanks!