All Forum Posts by: Jason G.

@Joe Splitrock By "BRRRR decreases equity", you mean due to going from 100% equity to 20%, correct?

@Jason G. So you fully financed 2 deals with HELOC down payments. Were you still cash flowing? Were these homerun deals or base hits? Would you reccommend this strategy?

What was the reason for the season? (no rhyme intended) I was under the impression that heloc funds are available for the DP.

 Ok, thanks.  So the question can be stated as "will I have paid off the mortgage before or after the breakeven point from the buydown"?  And if the breakeven point falls BEFORE my expected payoff date (even assuming a fast paydown of a 30-year mortgage), it makes sense to buy it down.  But if I would be accelerating the paydown so much that I expect to have it paid off BEFORE the breakeven point, the buy down wouldn't be the right choice.  Is that an accurate way of saying it?

BP,

Have acquired my first property February of 2018.  Recently got a soft appraisal from my realtor and banker who told me they feel comfortable that I can get $50K out of the home to use on a new property.  I'm in Tampa, FL and mainly looking for 2-4 units so $50K doesn't get me anywhere close to my market prices($150-250K).  I know ppl invest with HELOCs and just wanted to understand how, exactly.  I put about 20K of my personal money into the purchase and rehab of property and was hoping to be able to pull out and recycle the money.

Options as I see them.

• Use $50K as a downpayment on property in my area.  That would mean I have loans on 100% of the property.  That sounds risky.  Do ppl do this?  
• Use $50K as "cash" purchase of OOS investment properties in cheaper market.  Refinance property to pull money back out.  Repeat  Again, risky with unknown market.
• Wait for $50K to grow to 100-150K.   Buy all cash and refinance. Risky as market looks like it may go down/level.  Can take years and years to reach this. 

LOTS OF RISK. I want to grow and use the money I have created.  Any ideas?

I recently starting listening to the Listen Money Matters podcast, and they were discussing Roofstock on one of their episodes. After a quick look on the Roofstock website, I found some properties in a nearby market. I typically only look in my local market since I self-manage at the moment. Has anyone used this website before and closed on a deal? If so, do you have any reviews for this service? 

I am a little hesitant to move forward since I like running my own numbers, but I did want to hear reviews of this service.

Thank you!

Andy

Awesome review @Jason G. , thank you!

Did Roofstock cover the plumbing certification because they failed to disclose that in the original inspection report? How can you protect yourself from similar things happening on future properties?

I live in Brooklyn NY and I am thinking about investing out of state. I saw Memphis Invest and Home union, two websites that help people invest in a passive way and out of state. Anyone have any reviews about these two websites? Are they good and trustworthy etc......  

Thanks for keeping this updated Jason. You motivated me to try out Roofstock. After some time looking I finally found a home that would cash flow >6% after buying it outright based on the numbers RoofStock provided. I decided to submit an offer which got accepted. During the process they were very helpful and responsive, i got a call almost everyday updating me on the progress, however it turned out that their CapEx numbers were off by almost 50% due to the really high insurance costs (property was in a flood zone) which drove my cash flow well below 5% making this deal not worth it anymore. I backed out of the deal, asked for the Roofstock listing fee to be refunded since they provided false information to entice me to place an offer. All of a sudden they stopped responding and calling. It's been 2 months and still no refund, had to file a dispute with my bank.

I think their service could be good, but there's humans entering the numbers, so mistakes could be made. Anyone thinking of using their service should still do their own DD and not just trust their numbers. I probably wouldn't do business with them again seeing how they just stopped responding after I backed out and still haven't issued my refund 2 months later.