All Forum Posts by: Ryan Stumbo

@Joseph Firmin that's what I thought. So HELOC on my primary. Use that to get a better deal with a cash offer. The day after it closes, use the same bank to get a first position HELOC on the new property. Which let's say it was listed for 130k, I get it for 90k, the HELOC will likely amount to that 90k easily, so take that 90k and pay off the HELOC with the bigger credit line to open it back up. Sound correct?

Now my question is, with the property I just bought, what if my strategy is to buy and hold? Do I just pay the HELOC down as quickly as I can and get it knocked out or am I going to pay less over time to just turn the property into a regular 15 or 30 year loan? What is my next step once I secure the 2nd HELOC if I want to hold?

@Joseph Firmin I recently posted something similar to this post and see you’re giving good responses here so if you don’t mind to just allow me to pick your brain for a second. What is the more intelligent financial move?

1) use your HELOC to fully purchase a rental for let's say 100k but it's listed at 150k (this is assuming sellers give better deals to fully cash buyers since no dealing with banks on their end). But, this 100k of let's say 175k credit line is now tied up in this rental you just bought which leaves you with 75k.

2) use your HELOC for a down payment of let's say 30k (20% on the 150k house) on the rental and get a separate loan for the rest of the rental, which ends up costing 50k more for the home long term but also leaves you with 145k left on your HELOC.

Contemplating my first rental purchase if my appraisal goes well and just wondering what most people do in this scenario.

I am about to get an appraisal on my home on Wednesday. It will be my first ever HELOC attempt. Bought my home for 255, owe 220, but I have put 80k-100k into the home over a 3 year span in a nice neighborhood, so I can almost guarantee the home is worth at least 360k now. I have added an entire bathroom, hardwood floors, upstairs square footage, new tile showers, new laundry room, etc. lots of good upgrades. So I'm hoping for 400k value minimum.

My first question. 1) If it goes for 400, then my HELOC will be around 140k. Is it smarter to buy properties full cash with your HELOC?

2) So if a rental property investment is 120k I’ll say, but I tell the home owner look I’ll give you 90k cash now and bypass banks and all that, will this get me a better deal? I assume most sellers would rather just have the full amount on the spot instead of waiting for bank approval?

3) If this would get me a better deal, is it necessarily smart to use a large portion of my HELOC to get the better deal or should I use a small portion for the 10-20% down payment and then take out a separate loan for the rest of the house?

Thanks in advance for answers and advice. New to the forum but have read a book by the maker of this forum and talked to a friend who recommended I get on here.