All Forum Posts by: Brad Saari

yep, realize this is a one-stop shop for all things real estate investment across all experience levels. Advice you get here should only be supplementing your research and should you need a connection to sell you a turnkey property sounds like you have suitors :)

I like the simple one from bankrate.com. I pull property tax from the county website and insurance is a guesstimate based on experience until I get a quote. I plug these numbers into an excel 

Cash flow is for poor people and poor investors? Not sure that's sound advice. 

You make money in three ways via buy and hold: cash flow, appreciation and equity via loan pay down. They are all important and cash flow keeps the ship floating in turbulent waters while appreciation and equity happen over time 

Just so I'm clear when you say ROI on a buy and hold does that include cash flow, appreciation and equity from loan pay down? I'm factoring in 3% appreciation in the Denver market which is obviously low now but trying to keep some historical perspective...market can't stay this hot forever.

I'm not leaving Denver anytime soon :-)

Christian, this is still in the very early stages but it does appear possible. I'm still working out the details with my primary lender. They are working to find a secondary lender that will go 90% LTV on the HELOC.

So the line of credit looks like this:

$700 is what I think the property will appraise at

90% LTV

$512 is the loan balance

(($700 *.9) - 512) = $118k (for down payment and closing costs)

I am assuming this approach will not get me the best rates in town but you have to love no money down.

I'm currently investigating the possibility of using a HELOC for the entire down payment(10-15%) on my next house hack. My lender is busy with some personal stuff this weekend but I should know more on Monday, I'll report back.

Joshua, I started a year ago in Denver with a triplex house hack. Good way to get grounded in becoming a landlord, building the team - accountant, attorney, lenders, contractors, etc - and not need 20-25% down.

I plan to pay down most of the HELOC, turn the whole property into a rental, then move onto the next one.

Hi Art, I just recently purchased a triplex as a house hack. From my perspective it doesn't make sense to start an LLC with just one property or even several, its expensive and many banks won't lend to non-individuals. My strategy for now is to pay a little extra in insurance premiums to cover liability up to 1 million on each structure. My triplex is actually 2 units in the main house and a carriage house, so I insure them separately for liability.

I didn't want to deal with FHA, or put 20% down, so I have one conventional loan and a HELOC on the property.