All Forum Posts by: Michael Spence

@Nghi Le

Thank you for responding; I'm looking to BRRRR

Good Afternoon BP,

I've been reading various posts on starting out, but I'm not sure if someone has spoke on this.

My question is what should I do 1st:

• Secure preapprovals through various Hard Money Lenders (that way I know what how much I'd be able to work with)
• Place offers

Thanks BP

@Will Coleman

Thank you for sharing your success story

@Mike DeBuccio Jr.

I can honestly say that for me its really deciding what process works best for me and my situation, given I don't have the collateral in-hand to get started

@Sandeep G.

I live in the Central Florida area and the 32805 zip code has some possible potential down the road as they constructed the brand new Orlando City Soccer Stadium in that area, the Orlando Police Headquarters is also in that zip code and they have plans for revitalization in the nearby Holden Heights area as well.

But as @Shawn G. mentioned revitalization has a ways to go and that area houses homeless facilities and that facility can only hold so much.

@Gautam Venkatesan

Thank you for that article. This thread gave me some important answers and that article was the icing on the cake

@Joe Splitrock

Thank you for your response.

And to everyone that responded, I truly appreciate it!

Thank you all for your responses

So just so I got it:

• it probably wouldn't benefit me to use a HELOC for a rental property as the cash flow wouldn't be substantial enough and I'd have to continually pull from the HELOC
• Even if I do receive a HELOC for 80k, if I pulled 50k from it, I'd only be responsible for INTEREST ONLY of the 50k I pulled
• their will be closing costs

Does that about sum it up?

Thanks again everyone

@Henri Meli

Thank you for your response; it seems the variable rate is quite common

@Temitope Adebayo

So are you saying I'm not charged with paying off the HELOC, but only the interest that's associated with the total amount?

@Ryan,

Those are my concerns as well. On top of my mortgage payment for my house that I'm living in, and 2 additional payments; 1 for the HELOC and 1 for the rental property.

Hey BP,

I'm truly trying to get a firm grasp on how a HELOC works. My wife and I are currently considering taking one out on the property we live in to purchase our first rental property. The problem is I'm still unsure of how it all comes together. Is there someone whose gone through this process actually lay it out for us? Any pitfalls to look for? Etc.

Thanks BP