All Forum Posts by: Kate Weinberg

@Shane Hakala  i would be interested in any wholesale deal you have in SL county.  Currently flipping here.  thanks.

my lender guy in utah says 6 months.  Just asked him a few days ago for the same reason

yes great. However, what i am suggesting is to get rid of that HELOC tied to your primary home after 6 months as it is 1) tied to your personal home! 2) volatile and who knows with new administration whats going to happen to rates. The way i suggested means you mitigate the aforementioned 2 risks by taking out a separate 30 yr mortgage on that new investment property. Granted, higher rate and some closing costs to take out new 30 yr mortgage but I don't like having a long term commitment tied to my HELOC.....I would not use a a HELOC for buy and hold for anything over 6 mos-1 yr MAX. Im usually more like 3 mos for flip and out.

Hi Eric,

I may have missed something here so anyone pls feel free to correct...but just a thought...

Could you just get a HELOC (the kind where you only pay interest for the 1st 10 years) on your primary for 75 or 80% LTV (which would be 42,500-58K). Use the HELOC funds to purchase the investment property.

Then, after 6 months seasoning of the investment property, go apply for a cash out refi on it. This would throw a 30 yr. mortgage on it (at investor rates ~4.5% currently). You can then pay off that volatile HELOC. This assumes however that you have some equity in that investment house you purchased so that there is enough equity to pay off the heloc....Either as a result of you buying at a discount or it was distressed and you fixed it up to increase the value....is this the case?

I say this scenario because it is exactly what i am hopefully about to do on a new property as well as some other owned properties.  Cycling of capital....