All Forum Posts by: Marcello Di Gerlando

Not sure a traditional bank will be helpful. income will be key as you have found out. Have you shopped around? I am always amazed at how varied bank rates and terms are. I just shopped around recently and found something that fit my needs after speaking with at least 10 banks and credit unions. I was also amazed at the different approaches to my particular situation the lending folks were able to brain storm. You may find that a HELOC is not your only option. The fact that you have a paid off mortgage may help with finding someone like a Hard Money Lender to take on a first position with a commercial type lone. Dodd Frank may not appreciate this approach but shop the HMLs they may have solutions to your needs.

As long as your income can support the credit you should be able to find a lender that will give you HELOCs on both properties at 70%-80% LTV. That's access to 200K give or take if you can make it work. Good chunk for your next cash purchase. Good luck!

Hi @Account Closed this discussion may be a little out of my lane. However, no matter what lane we travel in we all have to evaluate risk. I recommend you pull a Risk Assessment Matrix off the the internet and see if it helps. I tend to run a risk assessment in a rule of thumb type way in may head for literally everything I do. Hard to describe without looking at a matrix (its a visual tool) but you will want to consider the SEVERITY of the outcome 'Y' axis with the PROBABILITY of the event 'X' axis. SEVERITY axis will include something like: catastrophic, critical, moderate, negligible. PROBABILITY axis will include something like: frequent, likely, occasional, seldom, unlikely. You will have to assign both a severity and a probability to the circumstance around your deal. In my opinion you should always stay away from anything that you consider extremely high risk unless you can mitigate the circumstance to reduce your risk to moderate or low; insurance, partners, cost etc . 2cents.

I have been communicating with them recently to get my STR property on the market at the end of the this month. So far they are communicating very well with me and have forwarded me a ton of resources, including vetted cleaning and maintenance teams, lodging tax firm, tips and tricks and even stats on other areas they support STRs. I hope they are going to be everything they promise. I will be looking out for updates on this firm.

Home Depot sells indoor propane heaters that may be helpful.

Correction...no electric..hmm. Scratch what I said. Make sure your insurance is updated.

I've been here. Electric space heaters are your answer; if you have any concerns at all that the pipes may freeze...I promise you will sleep at night until this is resolved. I would not think twice about it. Avoid a catastrophe! space heaters are cost effective insurance. Good luck.

Definitely speak with your lender to understand the specifics of the HELOC terms. I'm sure you can find info on BP check the forums. The HELOC I am referring is a interest only proposition either fixed or variable interest rates. It operates like a credit card..sounds scary but its not; if you don't abuse it. My HELOC payments are not amortized insofar as I am not paying down the principal like a mortgage. I make interest only payments on only the cash I draw and then I throw my 'spare' cash at the debt to keep the payments affordable and until I flip the property or refinance into 30yr fixed mortgage. Also, I made some assumptions to your original post that I should clarify. 1) Do you have equity in the property you can draw on? 2) Are you trying to pull cash out to purchase another property?

Good read

I typically just secure a HELOC instead of cashing out. A HELOC is considerably less expensive,a few hundred bucks not in the thousands. I also like the flexibility of being able to use the credit line when I find a deal. I'm not doing back to back deals so this approach works for me.If you have a property already lined up the numbers might work for you to cash out and pay the fees...I'm not sure they will. A lot depends on your follow up investment. Run the numbers on an interest only HELOC against a full cash out, remember to include your holding costs on your follow up investment. To be sure the HELOC is a temporary position that you must have a exit from for this method to work.