All Forum Posts by: Javier Duenas

Quote from @Joseph Guzzardi Jr:

@Javier Duenas I come across fix n flips frequently. I can assist in guiding you for acquisition

I would really appreciate that! I would like to get started and start making some cash of my own. Thanks!

Quote from @Joseph Guzzardi Jr:

@Javier Duenas using a Heloc on a buy n hold is likely not advisable unless it is a heavy cashflow play and you can get $$ back towards principal and int relatively quickly. Best used on fix n flip or fix n hold where you can pull a majority of your funds out.

In this market it is challenging to pull out all of your funds on a BRRRR. I would consider some of the south NJ markets as price to entry is lower and higher possibility of cashflow, especially if renting to sec 8

Thanks Joseph, yeah I was considering more fix and flip like you mentioned. This way I can make some of my own cash and not depend on the HELOC. The challenge is finding the property that works, especially in NJ right now. Thanks again. 

Quote from @Zachary Cain Humphrey:

Quote from @Javier Duenas:

Quote from @Zachary Cain Humphrey:

Quote from @Javier Duenas:

Hi all, I'm new to bigger pockets pro and new to investing. I have many questions and concerns as a newbie. I'll give a quick summary of my situation. I only own my primary home in New Jersey and do not have any personal cash available (unfortunately). I opened up a HELOC which is my ONLY available funds. After analyzing a few properties on my own and now utilizing the calculator on BP, it seems that nothing will work because the HELOC payment at probably 8% or 8.5% variable is destroying my numbers. The market in NJ seems too high. I was thinking possibly start with fix and flip to make some personal cash and not depend on HELOCs. I was advised not to because of the risk and the taxes that I would have to pay on capital gain. I also thought of the BRRRR method, but again, between the mortgage for that property plus paying the HELOX back doesn't work. Do you guys have any suggestion as to what I should do, or where I should look to help purchase my first investment property. Thanks.

Depending on the size of your heloc could have enough for down payment on high cash flowing rental like STR

Hi Zach, yes, I'm probably gonna start off with fix/flip to make some money. Although, now you got me thinking about STR (airbnb). I'm confused! Lol.

Only thing with air bnb the property needs to be ready to go vs. fix flip you got the flip aspect and not dealing with guests. So there are various ways you could think about it. If your going to buy and hold then I recommend STR just because the cash flow makes more sense especially when your starting out. If you're buying a property and only making 2-300$ a month then in my opinion it isn't worth the time.

I agree. If I decide to go with rental rather than flip, then  I would go with STR. I’m still on the fence, but I’m leaning towards fix/flip to make some cash and hopefully after a few, I can start using some of my personal cash rather than the HELOC. Thanks 

Quote from @Denis Ponder:

Agree that fix/flip is the fastest way to build capital.

Can you house hack your current primary to reduce costs and start building up some capital?

If it was up to me, yes I would house hack.  We live in a single family home for the last 27 years and my wife refuses to leave, especially that we renovated the house like two years ago. She feels that we worked to hard and went through a lot with the renovation and the contractor to just rent it out or sell now. I rather keep her happy. If something goes wrong with my plans then it will be worse. 

Quote from @Zachary Cain Humphrey:

Quote from @Javier Duenas:

Hi all, I'm new to bigger pockets pro and new to investing. I have many questions and concerns as a newbie. I'll give a quick summary of my situation. I only own my primary home in New Jersey and do not have any personal cash available (unfortunately). I opened up a HELOC which is my ONLY available funds. After analyzing a few properties on my own and now utilizing the calculator on BP, it seems that nothing will work because the HELOC payment at probably 8% or 8.5% variable is destroying my numbers. The market in NJ seems too high. I was thinking possibly start with fix and flip to make some personal cash and not depend on HELOCs. I was advised not to because of the risk and the taxes that I would have to pay on capital gain. I also thought of the BRRRR method, but again, between the mortgage for that property plus paying the HELOX back doesn't work. Do you guys have any suggestion as to what I should do, or where I should look to help purchase my first investment property. Thanks.

Depending on the size of your heloc could have enough for down payment on high cash flowing rental like STR

Hi Zach, yes, I'm probably gonna start off with fix/flip to make some money. Although, now you got me thinking about STR (airbnb). I'm confused! Lol.

Quote from @Hamp Lee III:

Have you thought about renting rooms and saving up?

…you can also find a private money lender.

Establish a long-term strategy and move forward.

I wish you all the best.

Hi, I think I'm leaning more towards fix and flip for my first investment to save some money, especially that I would be using the funds from a HELOC. I'm honestly still confused and trying to learn and figure out my best option.  Thanks for your advise!

Yes I think repairs of 20K or less would be a good start for me. Once I start saving some of my personal cash, then I can find deals that require more rehab, but can lead to bigger profits.  Thanks again for the explanation of hard money. 

Hi Mike, yes, I would want to start with fix and flips to make some profit and save some money like you mentioned. Unfortunately, I have to use my HELOC for the project. I don't know what areas in NJ to look for fix/flip. I know people who have done it in areas like Paterson, Passaic, and Newark NJ, but I don't know if the time is right now. I would have to consider money from the HELOC for the time I'm holding the property while is being repaired as well. I agree with you in paying off the HELOC in 6 or 8 months. I just don't know if the sell of the property will cover the payout of the HELOC. Thanks!

Hi Shawn, thanks for your response. The option of moving out of my primary residence does not seem like an option right now. I just renovated my home about 2 years ago and unfortunately my wife is not on the same page. "Happy wife, happy life." LOL... I think it's important for both to be on the same page, although I honestly wouldn't want to move out either. Being that I don't have any personal savings (I know, It's sad), I should start with fix and flip. I just can't seem to find any in NJ right now that would work. Also, I rather stay in NJ for my first investment. I'm forced to use my HELOC for the down payment and the rehab. I have a HELOC of about 250K. I don't know if it's the smart thing to do or how to go about it. I think I would have to use the HELOC for a down payment than use hard money like I was advised by other in forum to rehab it. I don't know where to start, where to go. I'm not familiar with the process and how to pay back the hard money loan and the HELOC. After I sell the home, Will it pay back the hard money and the HELOC? Don't know. It's overwhelming and a big risk!

HI Kevin, I'm not 100% positive on the meaning of hard money lending, but if it's private lending rather than a bank, then I think that would make it even harder to obtain. It's hard for anyone to want to invest on a newbie who's never done fix and flips. I don't know of anyone who has the money and would want to risk it. I've been also told of a construction loan ( I think it's called 203K) or something like that. I don't know how it works and how I would pay that back. After fixing and selling the property and paying back the loan, plus the down payment from the HELOC, I'm not sure if the numbers will work to make a profit. It's very confusing. I feel like I'm stuck and don't know how to proceed. Again, thanks for your responses and advice. Please feel free to continue throwing advice and ideas. I truly appreciate it. Thanks!