All Forum Posts by: Nadya Babanskaya

I honestly had no idea there were so many investors in this group investing in Fort Wayne. This is amazing. Unfortunately Im in NY but I am definitely looking back home to get my foot in the door investing. Any suggestions for someone OOS? Fort Wayne is only a 2 or 3 hour flight and im willing and able to fly back if need be. Thank you

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Quote from @Taylor Dasch:

Hey great question and I am still trying to figure out the best way to go about this as well.

1. Conventional loans can be good especially when you are first starting out or refinancing out of HML or PML. I did this for my first rental and it has the lowest interest rate in my investment portfolio. I wouldnt be too worried about making the offer look less attractive than a cash offer as the market isnt nearly as competitive as it was last year. The advantage of a cash offer is getting a discount on the property.

2. If I had the option, and was very comfortable with my market(which I am) I would go this route. I like the idea of a HELOC - I dont have to worry about the high fees for HML/PML. If you have enough to do the full PP and rehab, I would use the HELOC to pay for the property - hopefully at 75%, then refinance and pay the HELOC back, rinse and repeat. This seems like it will be the least expensive way to go about this because you should be able to keep using the HELOC for that purpose. But it sounds like you want to get something a little more turn key so this may not be an option - even then though, leveraging the HELOC could get you much more in terms of cash flow.

#2 is the better option in my opinion because it allows you the ability to scale.

Thank you, that’s the one I’ve been leaning towards, especially considering the ability to scale. It is definitely the more risky option with a few moving parts and hoping everything falls into place though 😬

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Tampa, Florida

Quote from @Carlos Ptriawan:

Quote from @Nadya Babanskaya:

Hi everyone! Newbie here looking to jump in and buy my first rental property very soon. I keep going back and forth on financing it, here are the 2 options I’m looking at and would love if anyone could help me walk through the math and see what’s the better or more logical choice:

1. Get a regular conventional loan and put 20% (25-30%?) down. Not trying to buy a complete fixer upper so hopefully no issues qualifying. I understand that my offer would look less attractive than a cash offer.

2. Get a HELOC (saw an intro rate of 3.99% for first 6 months locally), buy with cash, immediately apply for delayed financing, get 70-80% of the purchase price back to pay down HELOC and pay the remaining 20-30% with my money (and perhaps (hopefully) some cash flow if rented right away) within those 6 months during the low rate period. This way my offer is more attractive as I'm buying with cash but I'm still only using the same 20-30% of my own money in the end (plus delayed financing closing costs, not sure how much those are).

What do you think is a better option, am I missing something or are there better options I’m not considering? Would love any input, tips or advice from more experienced investors.

Thank you!

go with (1) as it's balanced market and it's rental property only anyway. In this market there's no need to rush, there's not much bid.

Would you have any suggestions on scaling up after this purchase? I won’t have the money for another down payment myself. Cash out refi the new property after 6 months? HELOC on my primary home?

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Tampa, Florida

Quote from @David Ramirez:

Hey @Graham Reblitz,

For long-term rentals, I would recommend buying 20 to 40 min to the north or east of Tampa and you are going to be able to acquire decent cash-flowing properties. If you rather acquire properties near the metropolitan areas of Tampa and Saint Pete, you might be able to BRRR a property and get somewhat of a good cash flow. Most of the time near downtowns and huge demands areas what you get is a fast appreciation rather than good cash flow.

My partners and I run a real estate meetup here in Tampa every month and it would be great for you can join us at our next one. HMU if you would like to come!

Best of luck,

David

Where can I find the details of the meetup?

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Tampa, Florida

Thank you!

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Tampa, Florida

All Forum Posts by: Nadya Babanskaya

Nadya Babanskaya has started 1 posts and replied 5 times.

Post: Fort Wayne

Post: Financing Advice /Tips

Post: Financing Advice /Tips

Post: First-Time Cash-Flow Rental Investor in Tampa/St. Pete Area

Post: Financing Advice /Tips