All Forum Posts by: Joe Au

I am looking at a 9-plex in a very small college town. My question is how to select tenant without violating any discrimination rule? Can you only rent to student and not anyone else?

Also, how do you attract good students? Offer discount if they have high GPA? Being a on site property manager?

Thanks,

Joe

Thanks @Joe Splitrock This basically concluded this thread. Thanks again!

The graph on the left is the "debt transfer", you pull $3000 from it and do nothing. The right side have 2 bi weekly paychecks deposited to it and then paid expense on the 25th. I am just wondering if this is how interest calculate in HELOC.

I don't have an HELOC, can anyone tell me the following graph make sense or not.

This is my first post on BP ever, and I would never imagine it will get more than 100 replies. I came across a book on amazon called "How to own your home years sooner & retire debt free" by Harj Gill. It got great reviews and everyone said it's working for them. The method came from other countries(Australia, UK. Canada, etc...). That's why I brought this topic here to ask a bigger community.

My personal take on is this method rely on the cash management between accounts to minimize the daily average balance so that the interest will be reduced. Another must have requirement is to have positive cash flow. The extra cash flow will act as prepayment as everyone is talking about. And because it's a LOC, cash can move in and out from it "freely". That's why it sort of replace the need for a checking account.

Every tool has it's function. You can say a knife is dangerous because it can cut yourself with it. But if you give it to a chef, he can create wonderful culinary dishes. whether you chose to use it or not, it's totally up to you. But always get educated, numbers don't lie.

Thanks again for everyone's input.  

I am just wondering how to access the "trap" equity to do something useful. Maybe I shouldn't pay down a low interest rate primary mortgage, but instead save up the extra cash for a down payment for rentals.

Let's say I have a home with 50% LTV. And if i want to put down 20% down on a rental deal. Which method will make most sense?

home equity loan? heloc? cash out refi?

I am a newbie myself. I would get educated on REI as much as possible from books, blog, forum, etc... And do the math! Numbers never lies.

It's like when you first learn how to drive. you wouldn't start driving until you read about what the signs mean.

At least that's what on my mind.

Good luck!

HELOC is mostly for primary residence, but I'm sure there's exception.

I came across BP and start learning REI. Just come here to say hi to my local community.