All Forum Posts by: Ko Kashiwagi

Hi Vivek,

What is the ARV on both of them? Sounds like it would depend on how much the value increases by as you'd need to consider the equity and cash flow you'd make.

Hi David,

It's often said - cash flow is what makes you rich but equity is what makes you wealthy. Ultimately it depends on your market, but given Cleveland is a good area for rentals, it's probably a good idea to keep at least some of them. You can also choose to cash out refinance and get benefits of both the flip and rental (BRRRR strategy).

Hi Juliet,

Most lenders only offer HELOCS on primary residence. There are HELOANs which are second position loans that you can use, typically 30 year fixed. The max LTV usually is 75% on these programs. How much cash are you looking to pull out?

Hi Derray,

If you are looking to simply get cash out of the deal based on the purchase price, you can do a delayed financing. If you want lenders to consider the new value, you can do a cash out refinance after satisfying the seasoning requirement. As you mentioned most lenders need to wait 6 months but some only require 3 months.

Hi Iris,

A DSCR financing would be a great way to get cash out from the equity. You will be using FICO and Rent/PITI to qualify (no income, tax returns required).

Hi Walter,

Congratulations on your first house hack! What kind of investment (BRRRR, flips, etc) are you looking to do? Happy to connect!

Hi Nathan,

Is this property owner occupied or rented out? HELOCs are generally for owner occupied properties. As @River Sava outlined, there are pros and cons to HELOCS. If you have a proper exist strategy to pay off the HELOC, the HELOC is a great way to tap into the equity for a relatively short period of time. If you also presume the interest rate will come down the next year, perhaps delaying cash our refinance is not a bad option.

Hi Ryan,

Is this a flip or a BRRRR? Delayed financing is a common strategy for people who buy cash and later gets it financed. You can do this with both a short-term or a long-term financing.

Hi Patrick,

Typically less rehab there is, the less upside there is on the BRRRR, so you might leave some equity in the deal if you don't have much repairs to do. Also, because there is a seasoning requirement for refinances, you'd generally have to wait 3 months before you can refinance. Personally, if you have to wait 3 months anyways, it seems like a good idea to take on a project that takes 3 months to maximize returns. Finding undervalued properties is a great way to instantly build equity, but this takes a lot of work as well.

Hi Tahsin,

Is your delinquent payment recorded under the Verification of Mortgages? There are lenders out there that can do lower loan amounts the 75k, but the delinquent payment may be more of an issue.

Happy to take a look.