All Forum Posts by: Matthew Schellberg

Thanks for all the replies everyone. I'll do some further research. With the HELOC on a primary residence vs. investment property, how would a bank classify a primary residence? It was my primary residence for about 2 yrs (Aug 20 to June 22). I haven't refinanced my original loan. Can this still be considered my primary even though I'm out of state now?

Hi All,

I am looking for second property (house hack) and wanted advice on financing options.  

I have ~$160k in equity for my out of state property with a great interest rate of (2.8%). I have ~$20k in cash to dedicate to this deal. I also have access to a life insurance policy where I can borrow ~$30k at 5% interest. The types of properties I am looking for will need some rehab but mostly comestic (painting, flooring, etc.). I was leaning toward the life insurance policy for additional financing, but didn't know much about HELOC (questions below). Any advice would be greatly appreciated.

(1) - Does the HELOC have to be with a bank in the area near the property?

(2) - What are good questions to asks lenders when talking about HELOCs?

(3) - Downsides of a HELOC?

(4) - Would HELOC be worth it in my situation? Thinking I would need $20-30k additional to cover down payment/closing/rehab.

Thanks!

Have you found a real estate agent yet out there.  If not I entered my info on this site call UpNest.  A couple of agents reached out to me out the blue.  I’m sure if you go straight to an expert in your market (I.e. agent) they will set you straight.

My prospective tenants for a 2 bed and 2.5 bath condo (Cary, NC) asked for a 2-year lease.  I like the idea of locking people into the property for 2 years but do not want to miss out on additional rent next year.  Anyone on here structured a lease with a price increase after the first year?  I was thinking of countering with a 10% increase after the first year of the lease.    

Welcome aboard!  You have a great mindset to have at such a young age.  Your best asset is time!  

But hey, this video pops up my dashboard about a military vet and his progression in real estate investing.  Being in the military enables you to access opportunities that civilians can’t.  It’s BiggerPockets Episode #677 with David G, Jamil, and Taylor (the vet).  I’d start with the podcasts on BiggerPockets.  They give you ideas and resources that will prepare you to utilize that 40k.

Hi Nathan,

Glad to see another person from Reno on here!

I moved to Reno a couple of months ago and finally figured out how to say Nevada the correct way (east coast accent checking in).  It looks like we have a lot of similarities.  I am a professional engineer for a general contractor specializing in water/wastewater construction.  

Would love to connect!

Hi All,

My name is Matt, and I am excited to begin building the foundation of my real estate business with the expertise and guidance of the BiggerPockets community.  My entry into this community was through the BiggerPockets Real Estate pod.  So far, my favorite episode of the pod was the one with Rob Dyrdek.  Branching out from there, I started listening to the Real Estate Rookie pod.  Lastly, I am working my way through the How to Invest in Real Estate book by Josh and Brandon.  

Here is some more information regarding my real estate experiences.  I bought a townhome in NC back in Aug 2020.  All I knew at the time was that I had a decent amount saved and was tired of renting.  I lived there for a number of months until I started traveling for work.  Then, I dipped my toes into real estate investing by renting my place out to a close friend.  I was giving my friend a sweetheart of a deal, but I was just happy knowing my property was safe with someone I trusted.  My close friend moved out last month, so now I am going "legit" by hiring a property manager to look after it.  I am a renter again out on the West Coast, but my goal for the next 6 months is to find another property to house hack.

Ultimately, I want to focus on using the skills that make me a great engineer for a general contractor to build my own business that I can be proud of as I grow older.  Looking forward to all the hard work I will be doing, relationships I'll be fostering, and self-confidence I'll be gaining along the way.

Let's do this,

Matt