All Forum Posts by: Nicole Ferrara

I appreciate that insight . I agree that the investment into another property isn’t worth it . I do have an empty lot next to my current SFH , doing nothing (but costing me money to mow :))

my thought was to build a detached guest cottage to serve as an overflow for guests or it could also serve as a seasonal / monthly rental. My guess it would also add some value to the primary residence . The costs involved are about $100.000 all in (permits, engineering, architects labor , materials ) - I’m thinking that would be a better long term Investment than another SFH .
I’m guessing I could use the heloc for those purposes as well ? Thoughts ?
Quote from @Nathan Gesner:

Quote from @Nicole Ferrara:

Let's say you get a HELOC for $100,000 to purchase another investment. If the interest rate on that HELOC is 7% and your investment makes a 10% return, you are only getting a 3% return on the $100,000 you invested. That's not worth it.

So many people push investors to borrow against their equity, borrow from grandma, borrow, borrow, borrow!

I think this is a terrible practice pushed by a greedy society. True wealth is built over time. Increase earnings, reduce expenses, save, invest. That's the simple path that works every time.

1 Vote

Cape Coral, Florida

I purchased a SFH as an investment property - I'm reading here there some CUs and banks who will allow a 80% heloc (in order to get cash for another investment ) . Is this not a preferred purpose .? When asked by banks what the heloc is for - is it ok to note other/ cash for investments ? How long does one have to own the home to apply usually? The home has equity as we bought for below market

Thanks !

1 Vote

Cape Coral, Florida

Quote from @Matthew Porcaro:

@Anthony Barrueco

Hey Anthony - this is exactly how I got started in real estate!

My first property was a distressed two family, that needed a full gut rehab on Long Island in NY.

I just focused on making sure that I was going to be putting in less than it was worth when it was done, and that the other unit would rent out enough to cover most or all of my mortgage.

I purchased the property for 270k, and put 80k into it on the rehab.

My all in cost was $350k, and I knew it would be worth somewhere in the mid 400’s when it was done.

Turns out it was reappraised for $480k (now it’s appraised at $510k) so I built $150k in equity.

My tenant covered most of my mortgage for a little over a year and after that I moved out and rented out both units. That property now gives me a very healthy cash flow each month.

The process can be tedious if you don’t hire the right professionals. You want to get a lender that does these loans all the time, and they will help you streamline the process.

That was a mistake I made, that I urge everyone to avoid!

You’re definitely on the right path. Feel free to reach out with any questions.

Matt

Hi Matt can you recommend any lenders, consultants, contractors for 203k standard in nassau county Ny ? I tried to get the list from Hud but i keep getting “error” message . Have several homes I’m looking at that need 100k+ in repair but would still buy equity once Renovated
thanks !

0 Votes

Hello!
Ive hear in various podcasts how new investors do an 3 % down and the. Rent it out and do another fha within the same year

I am curious how they do that if there are term live in requirements

Are there qualifying events (like emergency/ job/relocation) that allow you to rent out the first FHA , in order to get a second fha deal in the same year ?

Do they use the same lender or product typically ?

Can this be done within the same state and area ?
thanks

0 Votes

Hello!

Newbie investor here here , who wants to begin building my portfolio with rentals

I currently have a duplex and a single that are mid term rentals in south west florida - going well

I saw an opportunity to buy 3 duplexes - new construction- Does anyone have experience in purchasing “to be built “ properties and what tips , questions to ask , or pitfalls to watch out for ? What should I expect this process to look like with the builder (from the offer to completion of properties )

Would a dscr loan work with this ?

What does that loan process look like on new construction ? What fees or tax increases should I expect to see on a new construction after acquiring

is there a formula on this type of transaction you would use ?

Am I being too advantageous ?

Many thanks

Nicole

Mom of 3

And ready to start doing “me” now that the last one is off to college !

0 Votes

All Forum Posts by: Nicole Ferrara

Nicole Ferrara has started 3 posts and replied 5 times.

Post: Heloc on investment property for more investment properties

Post: Heloc on investment property for more investment properties

Post: Your experience using FHA 203K loan

Post: How are folks scaling with 2+ FHA loans in a year ?

Post: Suggestions on buying 3 “to be built” duplexes