All Forum Posts by: Kenneth Hadinoto
Kenneth Hadinoto has started 3 posts and replied 9 times.
Hi BP community. I was looking at a property that is going for 200K. My agent looked into it and told me that it needed a lot of major work. (roof, septic) Rehab will be around 100K. He told me I wasn't able to get a conventional loan, but might be able to go through another lender. I would need to come up with 60-70K down. Not sure if this is something I need to tackle as a new investor, or should I keep looking? The comps in the area have sold between 380K - 420K.
Good afternoon everyone! I'm a new investor from Wallingford, CT here. I've been known to ride around town on my motorcycle with an Elmo helmet cover, among other ones. (Santa, Jack-O-Lantern, Easter Bunny) I forgot to post on here when I first joined the BP community. Hope to get started with 2-3 family houses. I'm currently paired up with a realtor through the agent finder here. Hope to meet some of you, and possibly work with some of you as well!
Quote from @Tripp Warren:
I see how hacking can be off putting for some. However, I'm having a hard time seeing how it's much different from Condo living. Especially if you're able to live virtually rent/mortgage free in a 2,3,or 4 plex. If you currently own the condo out right with no mortgage and you put a tenant in it and house hack a SMF, the only thing I would be worried about is the capital gains on the condo. But alas, this is just what I've picked up from the podcasts and BP books. I'm currently prepping my primary to do the same thing!
Best of Luck!
Quote from @Dave Skow:
@Kenneth Hadinoto.....90% cltv combined loan to value ... value x 90% = X ........X - current 1st mtg balance = possible amount of the HELOC
Quote from @Trevor Alexander:
Hi Kenneth -
Welcome to the forum. Well, the biggest con of a HELOC compared to if you were to split funds needed from another investor, would be that it's a second mortgage that you have to pay back. On the other hand, going into a deal with another person will hurt your cash flow by the need to split it. If you do go in on a deal with someone, I would just advise to be 100% positive it's a good partnership.
Personally, (and if you have the flexibility), I like the idea of converting your condo into a rental and purchasing another 1-4 unit owner-occupied property with a 3.5% down FHA loan, or a SFR property with a 5% down Conventional loan. That'll be the option to purchase another investment with the least amount of money.
If you purchase a NOO, you'll need at least 15% down on a SFR (with PMI), or 25% down on a multi-unit.
If you can access enough equity, the numbers work, and you would rather not move, taking out a HELOC isn't a bad move. Just remember it's a variable rate, and HELOC's typically aren't the best to borrower large sums out of or to hold on to long-term.
Hope this helps!
Quote from @Dave Skow:
@Kenneth Hadinoto 1) get a HELOC in place on your condo for the maximum amount in case you want to use it....the combined loan to value is likely to be 85% or 90% 2) with the HELOC in place you can then decide on either using it or using the partner approach 3) get fully pre approved before starting to actively look for the next property
Hi everyone! My name is Ken and I've been listening to the BP podcasts for close to 8 months now. Just started coming on the forums and wanted to introduce myself. I currently own the condo I'm in right now, and I'm thinking of looking for something to invest in. As far as money goes, once I find a deal and crunch the numbers, what would be the best way of financing said deal? I can probably find some people to go in on the deal with me, or should I take out a HELOC? What are the pros and cons of each? TIA for any help you could offer. I look forward to talking to all of you in the future.
Post: Wallingford Monthly Meetup!
- Posts 9
- Votes 5
When is the next meetup? I was in North Carolina for the past 2 weeks.
Post: How do east coast STRs work in the winter?
- Posts 9
- Votes 5
I don’t think this will help you out that much, but I think STRs would probably do better the closer they are to the casinos. I wish you luck on finding a solution. If you’re ever interested in selling, let me know. 😊