All Forum Posts by: Alipate Moleni

Oh and let's assume also that the seller has about 250k in equity.

I'm looking at an 850k 4 unit property which currently brings in 7k rent. I don't need help analyzing this deal; I'm looking for ideas on how I can finance this purchase and end up sole owner.

Here's what I have:

115k HELOC

30k cash

Pre approval for 300k conventional loan.

750 credit score

Let's assume I don't have any friends or family willing to help me out with this.

Got it? Ok, ready set go!

@Timothy Lewis Yeah I don't believe there are draw fees for either but I will double check to make sure. Thanks for the response, I was leaning more towards the penfed one as well.

I need to choose between 2 HELOC offers, one with Penfed, the other with Zions bank. Penfed is offering me 115k, variable prime + 1.5% rate, no closing costs. Zions is offering me 100k, variable prime + .94%, about $2k closing costs. Both are 10 yr draw period (interest only payments), 20 yr payback. I plan on using the HELOC for BRRRR.

I need to make a decision soon. Lmk what you think I should choose and why. Thanks!

@Ben Hoekstra I was considering doing something similar but with a BRRRR. I was thinking of these terms: I would find a deal and pay cash (he would be involved in this step), he would rehab it, I would pay for subcontractor's and materials, I would find a renter, when I refinanced all I would keep is whatever I spent, he would get whatever's left over and I would get the home. This way he's going to try and get things done as quickly as possible and done right but for as little money as possible in order to get the best appraisal. What do y'all think about that!?

@Ruth Blue just wondering, did your Mom's lowered credit score effect the rate she was able to get on her refinance? Asking because I plan on doing the same thing.

@Sean Michael Also, it is alot easier, and you'll get way better terms, if you pull a HELOC on your primary residence. So if you do decide to go the HELOC route, I would look into getting one on that Denver residence before y'all move. Good Luck!

@Sean Michael I recently faced a similar predicament. I decided to keep my house and rent it out despite the low cash flow because 1. Im pretty sure it will continue to appreciate and 2. I did not want to have to pay the government Capital gains tax. Right now I'm in the process of getting a HELOC on that property to use in future investments. The reason I'm using a HELOC is because I plan on using the BRRRR strategy (as is everyone else lol) on future investments. Ill withdraw money from the HELOC to pay cash for a distressed property and fix it up. While fixing the place up I will only have to make interest only payments on whatever I withdrew. I will then find a section 8 tenant, refinance the house and pay back, or reload the HELOC, so that I can do it all over again. The HELOC I applied for has a 10 year draw period so I can use it for this strategy for the next 10 years. For most HELOC'S there is no annual or holding fee so youll only be paying if your using it... Anyway, this is my plan, which took me months of consideration to come up with. Hope it helps you with your plan.

@Emma Powell wondering what rates/terms does pentfed offer for heloc's on rentals?

@Dan Gustavson zions bank offers heloc's for rentals as well: 80% LTV, 10 yr draw period, interest only payments, then 20 yr payback. 4.8% + .94%. Apr. Less than $2000 closing costs.