All Forum Posts by: Richard Queen

I'm curious how many banks you have contacted to ask this question. You may find a few who won't but I'd guarantee there are quite a few who will offer funds on investment property. I currently have a HELOC on a SFR investment property where I got 80% LTV. I think the key is make more phone calls to different banks and tell them what you are needing to do. You'll find one. Also look for a mortgage broker who will be able to check many options at once. That may keep you from so many phone calls. Rest assured I and many others on here have done exactly what you are trying to do. It's possible. Just find the right lender. Of course this always depends on the rest of your financial situation as well. If your credit score or personal finances are a wreck, that makes everything harder - still not impossible. Hope that helped some. Good luck!

@Diana Jing I got a HELOC for 4.75% for 80% of appraised value on a free and clear SFR I have. It's a great tool to have in the tool box.

Put together all the info and some good pics and post to Zillow.  That will in turn post to HotPads and Trulia.  It's free and I've had great success.  If you're a first time landlord, you need to be fielding the calls and learning the process in my opinion.  Learn what it takes to screen a good tenant, talk to them and get a feel for them, set expectations, etc.  You can also post on Craigslist, Facebook marketplace, etc.  There are tons of social media outlets for free to advertise your rental.

@AJ Hu I'm working with Huntington Bank in my local market which has a private bank inside of it. It's been a great way for me to get a little more flexibility than most banks offer. I also have a mortgage broker that I work with who can check rates of multiple lenders and I use that when needed as well. The key is to make many phone calls in the beginning and then pick a couple to build a relationship with because the more they know about you, the more flexible they can be.

@AJ Hu I was able to get a HELOC at 4.75% but it is variable so keep that in mind too.

I recently faced the same question with a couple properties I own free and clear. I decided in favor of the HELOC because it gives me more flexibility where I'm only paying for what I use. I didn't want to do a cash out refi and then let the cash sit while I found deals. With a HELOC, I can have the flexibility to make cash offers on anything I find and then refi back into the new property and pay of the HELOC, keeping it open for future deals. I can keep the HELOC open as revolving cash credit and use it for several years. There are benefits to both methods. Awesome job in getting free and clear properties - I think that's the win here. Cash out vs HELOC - both are going to use your equity to get more properties = success! :)

Local REAs are always a great way of getting comps without requiring a lot of personal work on your part.  I also have had good success with my local county PVA website which allows me to look at the property history but also look within a certain radius for similar sales in the last X months / years.  These two methods combined have been good indicators.  I'd also check out dealcheck.io.  This has been a fantastic resource and offers value and rental comps based on publicly available data.

Agree with @James Wise. If you can make a cash offer with quick closing, that's the strongest. No contingencies. I use a HELOC to make cash offers and then pay it off after refinancing.

I would definitely check your state laws and speak with an attorney. You're options are much more limited now that they're in without paying first months rent. I never hand over keys without first months full rent and deposit. If any proration is needed, I prorate the second month, not the first. This gets me full month on move in. Good luck!

Cozy is great and has a ton of functionality.  Highly recommend it.  My tenants love it too because it allows them to build a credit history and show full reporting for their on-time monthly payments should they ever need them for creditors in the future.