All Forum Posts by: Joe Jackson, Jr

Hi Berenice,

I personally use a HELOC out of my primary residence to invest.

I prefer the HELOC because of the flexibility, if I'm not using it I'm not paying for it. Also being able to just pay it off and reuse it over and over again.

Now, I don't have a huge portfolio but when I was in a similar situation, my bank only offered the refinance option on an investment property and the HELOC was only on your primary residence.
Not saying this is the case for all banks but be sure to confirm that is an option for you.   In my case, I refinanced the investment took the cash and paid off the HELOC and began looking for the next property. 

Good afternoon Justin,

Fairly new investor here, I've owned rentals for about 3 yrs now and I got started with a HELOC on my primary residence.

I chose the HELOC for the simple fact that I didn't have to pay if I wasn't using it and I can pay it down and use it again over and over.

Note that some lenders only offer HELOCs on your primary residences. So, I'm not 100% sure how that would work with you basically getting it to move. Not saying it's impossible just something to think/ do a bit of research on. 

When you say ~$20K in equity are you using LTV to get that number. Like a normal loan, the banks usually don't loan 100% of the value of the property. For example, the house is worth $100K the bank will only loan up to a certain % of it say 80% (some loan more some less just a round number) or $80K - the current loan you have on the house.

Morning @Ryan Daniel Palmer,

Maybe Cash for keys, I'm sure there are tons of posts about it and how to approach the conversation. In short it is basically offering the tenant some money to move instead of fighting and getting an eviction on his record. 

In terms of ducks in a row, I think that has a lot to due with what your lease says regarding eviction, sounds like a simple breach of contract to me, if your lease says no smoking and you can prove he has been smoking, it says rent is due on the first and he is late, noise ordinance and he isn't respecting it? 

Again, usually a lot simpler and hopefully painless option is the cash for keys. Save yourself the time and court dates, figure out if you can make that work. 

disclaimer: I am not a lawyer and I am a fairly newbie investor/ landlord. 

Hi @Michelle Harrington, 

It is my understanding that you are stuck with the "current" lease, I could be wrong so I would check with a local realtor or investor. 

Another option would be to offer a "Cash for Keys" type of deal to the tenants, get them to walk away willingly. May save you a some money and time apposed to trying to raise rent and potentially evict a valid lease.

Hey @Ronald Trepton,

@Adrien C.'s property management company, Listing Leaders Prestige Management is providing phenomenal service the area.  

Welcome to the wonderful world of RE investing. lol 

I would look around in Lexington and find local Investors, call those "we buy houses" bandit sign numbers. Find meet-ups to NETWORK NETWORK NETWORK

A lot of people say look into Wholesaling another option is house hacking. I would read @Brandon Turner The Book on Investing In Real Estate with No (and Low) Money Down: Creative Strategies for Investing in Real Estate Using Other People's Money.

Hi @Carrie Eaton,

it is my understanding that you can only take out HELOC on your primary unless you get a lender to provide a Line of credit on your portfolio. I've only heard about this from a business standpoint, a business owns a some houses free and clear and the bank offers the business a LOC with the houses as collateral. I'm sure the requirements differ by bank.

As far as should you not mention your intention, I used a LOC to fund the down payment on 2 investment properties. So, I don't think the intention to buy investment property is the issue it's moving out of your primary.

Another possible option for you is a cash out refinance, if you don't know what that is, it's basically you just get a loan at the current value pay off the balance on the original loan and you keep the difference - closing costs.

I would talk to a tax professional but if it were me I usually prepare for worse case scenario. So, I would put away the 15k or at least put it in something liquid that way if it comes back and it should be 3K great but if it comes back and should be 15k you have that available. 

Following, I'm in a similar situation I own 3 units and don't plan to open a business entity just yet.

I would try calling the customer service, I've only heard good things about them. 

One thing I think some investors overlook is landscaping, most just get it mowed and weed whacked. I think if you put some effort a few extra dollars can go a long way in adding value to a property.