All Forum Posts by: Justin Phillips

Yikes! That's a bummer, as access to equity is huge in a potential downturn. That's one of the many reasons I'm a big fan of specialized 1st position Helocs. They have the staying power more similar to that of a traditional mortgage. We set one up at these crazy prices, so we can put that equity to work when the market shifts.

@Hsiu Chu Cheng Love it! Thanks for taking the time to put this together! 

@Billy Seol Just focus on finding a lender that services your state. After you have the Heloc, you should have the freedom to draw and use the money however you please. 

@Jeff Cliff @Kao Nou Xiong You can definitely put Helocs on investment/2nd homes. I help clients with that all the time!

@Sam Smith Hemet has some nicer areas, and some not so nice areas. Hemet even has some areas that look nice, but are some of the worst. 
That said, it seems the city is trying to get their act together. A lot of new dining and retail has gone in. Last time I passed through I thought that the homeless population seemed to have increased though. 
In short, Hemet would not be my top pick in that area, but it seems like it might be in the path of progress. Temecula/Murrieta/Menifee getting more and more expensive is seemingly pushing some good folks further out to Hemet and surrounding areas. 

@Joshua Zdunich Agreed with the general consensus here. Some lender will also "asset deplete" where they'd take that $400k and divide it over 10 years. For those numbers, they'd count $3,333/mo as income. 
What I'd recommend is to get as much financing together while you still have that W2. Before my last big career change, I refinanced my property to a very specialized 1st position Heloc that's tied to a ZBA. That gave me 30 years of access to equity, and no true monthly mortgage payment. It maximized my flexibility, and lowered my DTI and regular expenses.
That's an exciting time in your journey, congrats! 
 

@Jeff Kathwell Those numbers sound like that property would make a great rental. However, it sounds like you would be able to make that money work harder elsewhere. At that point, it really comes down to preferences. If you're looking to get your feet wet in landlording, or expect to get some further appreciation, it might be best for you to rent it. 
If you're simply looking to make your money/networth work as hard as possible for you, it'd be a good time to sell and deploy the earnings elsewhere. 
At the end of the day you're in a great position! Look at the numbers with all expenses included(capex, vacancy,etc.), then make your decision from there. 

@Justin Kerstetter Sounds like that might be a great way to get some solid short term tenants! 

@Adrian Alfaro Very Nicely done! I like what they're doing in Yuma, it's definitely on the up trend.