All Forum Posts by: Justin M.

Here is the section 4024 from the law 116-136:

Are there dates around this? How do we know how long this is in effect?

To answer your question, I have not seen any specific form either. I have just been telling my tenants either by phone/text/email.

I still post on Craigslist, but the majority of my leads come from Zillow/Zumper and their distributed network.

I had to list 2 properties last week and was inundated with inquiries in less than 24 hours. Subsequently had to take the listings down because I could not keep up with all the replies and communications.

Thanks Ned. They did lower the price and got an offer another $60k below that (the only offer they received). The price the market wants to pay is apparently not enough. So, that is why they are looking to re-configure the HELOC because it is a wasted $700-800/mo in interest just going to that.

I have a friend who is in a situation that I have not experienced before. This person has a primary residence with a good amount of equity in it, and took out an interest only HELOC for $125k (10yr interest/10yr payoff). They used the $125k as part of a down payment on a new house with the intention of selling the original primary residence then paying off the HELOC.

However, the original house has been on the market for 3-4 months and not getting much buyer interest, while costing a lot of money (double mortgages + heloc). Fortunately, they were able to get it rented for enough to cover the 1st mortgage and HELOC payments. The bad thing is, that HELOC payment is just a giant interest payment when it could be cash flow if it was a P&I loan.

I am trying to think of creative ways to get out of the HELOC and get that money financed into a conventional loan or something else. Is it possible for someone to buy out their HELOC and get a % return on the money, or maybe partial equity value? I don't know if there is a market for that like note investing or something else. So, looking for opinions or options here.

You might want to try Bellco Credit Union as well, although I do not think they have any locations in the springs. I *think* they offer investment property HELOC's. I just did a primary HELOC with them and it was ridiculous how easy it was.

Welcome (almost) to Denver! I think just about every investor in the Denver area is having a tough time finding a property that works. They are out there though. From the wholesalers that I have worked with, you are going to find mostly distressed homes, and I've only been seeing SFH, not multi-family.

There are a lot of investor friendly agents and companies in the area, some of which I'm sure will introduce themselves. Start making connections and continue looking would be my advice. That is kind of my process as well.

How long have you owned the current home? Have you looked into doing a cash out refinance? If the numbers worked, you might be able to lower the payment and get a little of your equity in cash to deploy to another rental.

I'm not sure I would add $125k in debt and 15 years back into that home loan just to get ~$200/mo cash flow and nothing else.

Also, finding homes to invest in Denver is pretty tough right now, unless you have large chunks of down payment money. At least, that has been my experience.

Sorry for your loss, that is a terrible situation to go through :(

I posed a similar question recently as I am in the same situation, lots of equity not being used. I do not have quite as much equity as you but the replies here help just the same.

I ended up taking a $100k HELOC on my primary and I'm still trying to figure out what to do with my rental properties (about $300k equity between them, but on very low fixed interest rate terms). I've yet to deploy any of the money though, searching for the right opportunities.

Good luck!

Good topic! I see the hot markets are making it difficult for a lot of people, myself included. I wonder what these responses would look like in a cooler market with more reasonable prices?

For me, I am being held by back by analysis paralysis, I guess you could say. Even though I just closed another property in January.

Now, I am really trying to find markets where I can get the best return on my money and deploy that money to go to work!

I'm not sure what the market is like where you are, but I haven't found homes even from wholesalers that will allow the full BRRRR process. I haven't found any where I can get the initial investment back, which is critical for the repeat step.

As stated above though, why not work with both. You might find deals from either.