All Forum Posts by: Luke Edward

Hey Joseph thanks for the reply. Currently I do not have a mortgage on my home. I paid if off roughly 5 years ago so at this point I don’t have any rates or a monthly payment for the residence. I own it free and clear. Right now I’m trying to figure out the best possible options on going about getting another property. Probably at this point leaning towards a home loan but still not too sure, any advice would be greatly appreciated!

Quote from @Patrick Roberts:

Cashout refi over heloc. You'll get much better terms than with a heloc and you wont have the risk of the line being converted.

Thanks for the reply Patrick I appreciate it. Generally speaking what would the interest be on a cash out refi? I know the interest will vary depending on multiple factors, but generally what should I expect? 

A little context. I own my home free and clear no mortgage. I want to use my equity to purchase another single family home and rent it out as a long term rental investment. I spoke with my bank and they said I can use 80% of my home's equity for a HELOC at around 8% interest. My question is fairly straightforward. Should I use the 80% equity and purchase another single family home outright free and clear and then have the tenants pay off the HELOC through my rental income? Or should I use a Home Loan and cash out and get the full amount and purchase another single family home and rent that out using that rental income to pay off the Home Loan? Any advice or suggestions would be greatly appreciated. I have experience as a landlord, before I moved back into my home currently I rented it out for a couple of years. Not much experience but it is some. I'm looking to take my Real Estate Investment to the next level, no more time to waste. Thanks!

Originally posted by @John Brodeur:

Hi Luke, I would check out asset based lenders / non-traditional lenders (non-banks, many of these companies offer non-conforming loans that are solely based on the asset that they are lending against (the property). They look at the profitability NOI and Debt Service Coverage Ratio and Market Value of the home to determine what they could lend against it, vs. your income. I am currently working with one on a refinance.

I would check out the https://www.biggerpockets.com/loans section and do some research / review potential lenders there to see which ones lend in your state, and might work for you. Then I would suggest calling 3 to 5 to get quotes on what they would lend.

Good Luck on your continued journey in real estate investing!

 Hi John, thanks for replying. I will definitely do that for sure! Thanks you 

Originally posted by @Nathan Gesner:

Why change anything? $2,000 a month is pretty good income. If you don't need to live off it, save it up and you'll have money for a downpayment in a couple years. Rinse and repeat.

Thank you for the reply! Frankly, I don't want to wait 2 or 3 years to make my next move in REI and even though it's not an extremely large amount of money, I feel that it is enough to do something with, if that something was a good idea/investment. I'm just unsure on what my options would be related to REI with that amount.

Thank you for reading, My question is fairly simple. I have 1 single family home 3 bedroom 2 bath, it was my home growing up and it was left to me after my father passed. I cleaned it up and had it painted, my Father had a lot of work done to it before he passed so it was in pretty good condition. Older home but good bones. I payed off the home and own it out right, no mortgage. It currently brings me 2k in rent a month. After property taxes, school taxes, insurance etcetera I'm left with roughly 15-16 maybe 17k at the end of the year. What can I do, real estate investment related, with that much/little? I am currently not working, so I am aware that I do not qualify for some HELOCs and other loans and lines of credit, even though I have monthly income from the rental. I've tried to do a refi and use that cash but I don't have a "conventional" job and haven't found anyone willing to use my rental profits as income. So what is possible with that much money in REI? Thanks again for reading.

L. Lee

Originally posted by @Mark Brogan:

@Luke Edward, it sounds like the park changed their mind, get outside the Houston area within an hour and ride some other parks I'm sure you will find some 
happy investing

Hey, thanks for the reply! What areas do you think outside of Houston I should look into?

So after everything was set up and ready to go, the property manager came back and said they can't sell me the home because it would break "Habitable" law because of the work that needed to be done, it wasn't immediately ready for someone to move in and because of that she said I could turn around within 60 days and sue them. The entire process was a giant waste of my time, and a complete let down. 

I am trying to make my first purchase on an investment property. I have been looking at sites like Auction.com and other sites as well to see what homes are going to be auctioned in my area. My question is, how can I find out if these properties have any liens on them? How can I do my due diligence before I make a purchase? So far, I was interested in one particular property, so I called the county clerk, finally was transferred to the right department that would have the information I was looking for, only to be told that they don't have that kind of information, even though I've been told by many people that the county does in fact have records such as liens. So after that dead end I called a title company to see how if they could run a Informational Report to see if the property had any liens or outstanding debts that I would assume on purchase, but the representative at the title company said it might be like 200$ to get the info I want. Is there a better way to do things? I have the capital to make a small purchase on an investment property, but I do not have the capital to waste 200$ every single time I need to research a property. Also, what kind of things should I be looking for when researching a potential investment property? How should I go about doing this? I have come to the point of being ready to invest, but I have absolutely no idea where to start, or how to start. Any help is greatly appreciated, thanks! -Luke

Hey! Thank you all for replying to my post, I appreciate all of the good advice. Since posting I have found a decent used home, already in a park. I have placed an offer with the property manager. Hopefully everything works out, and I will keep the thread open to update my status. Feel free to continue to post ideas or thoughts! -Luke