All Forum Posts by: David Mackin

@Bryce Pryor I would definitely connect with a lawyer to make sure you fully comply with laws in your area. I considered doing room to room rental in my property. I decided against it for may of the reasons you stated above. I crunched numbers and found that I would cash flow enough doing LTR. The extra money for single room wasn't worth the headache.

That being said, I no longer live in the property. I was lucky enough to have buddies rent out the other rooms when I was House-Hacking.

Like @Michele Fischer said above, checking out STR or Traveling Nurses (Mid Term) might be a good option to get the hang of things before dealing with a longer commitment.

Regardless, congratulations on the home! Whatever you decide to do, I hope it goes well and you find yourself in a great position!

If you would like some help finding connections, feel free to reach out.

Cheers!

I have to see this when it's done..... I picture Hopper and El hiding away in their cabin in the forest!

Looks like a great deal. I hope you post an update when it's finished!

@Naomi Gallivan What made this flip go so smoothly for you? Looks like a great deal!

I had awesome returns on my property in Westminster. It's right between Denver and Boulder which I believe pushed appreciate a lot. The area could be reaching a plateau, so I'd be curious what other people will answer. Finding a purely growth area in Colorado that hasn't seen massive gains yet, feels like looking for a Unicorn sometimes.

@Jenny Picot have you reached the point where you are no longer paying mortgage insurance? 78% LTV.

This could make a difference in your decision.

Also, are you going to house hack the next property as your primary?

@Megan Blythe I have a rental in Westminster as well. How does yours do as far as STR? Right now mine is a LTR but have been curious about the Westminster market and how the STR numbers look.

I will make sure to do this survey as well!
Thanks!

@Devin McGinley @Tanner Pile
Keep in mind, if you refi into a conventional loan, you open up your FHA benefit and can use it to purchase the next property as a primary. This might help you with your decision.

Looks like you've put yourself in a great position. I wish you the best!

Hello Doug,

I would spend some time working out the numbers for both options. Obviously you can't perfectly predict what the market will look like by the time you save up a down payment, but you can certainly work out the numbers that include interest and payback on your HELOC. I think if you can comfortably afford to use your HELOC for down payment and find a deal that cashflows anyways, then go for it. Consider that in the time it takes to save for a down payment, you will lose out on rent payments that build your equity (which you already mentioned of course). I think that's a very important variable in this decision.

Maybe another option to consider is to save for a shorter amount of time and use some cash, and less from your HELOC than if you bought right now. That way you're not waiting AS long, and your HELOC payments aren't as drastic. 

I have a HELOC on my property and definitely consider using it to parlay into the next deal all the time.

I wish you the best of luck! I hope this helped!

Hey Lonnie! Although I don't particularly invest in Aurora myself (I have a property in Westminster), I have many clients that are actively shopping in the area for their first house hack property. The market is insanely tough at the moment but things are still happening for these folks. 

I would love to connect! Feel free to shoot me a message at any time!

Accept.Inc Is no doubt a great lender option in this market. Cash offers find their way to the winning side quite often.

A couple things to be aware of when using them:

1. Interest rate can potentially be higher than going the traditional route. In this market, if a higher Interest rate is doable for you and it means that you get the property you want, by all means go for it!

2. Seller agents that aren't coached on these kind of offers might be weary to go for it. An agent that understands Accept.Inc's methods would probably be okay with it. But, agents want to know everything that's happening with an offer. If they think something weird is going on in the background, they might not go with it.

All this being said, for a lot of people the pros far outweigh the cons. I've met many folks that enjoyed their services!