All Forum Posts by: Shawn Skaggs

@Todd Powell no worries there 😉. I’m under contract on rental units 10 & 11 since February.

@Todd Powell sounds like the new job is a perfect fit. Congratulations! I’m sure this will be a great new chapter for you. I know it’s hard to ignore the haters and you’re right, everything we put on social media is public and up for scrutiny from whatever crazy person wants to read it. However, I want to let you know your story was inspirational to me and one of the many reasons I believed I could start building a rental portfolio on the side too. It was / is a good move and a great way to build towards retirement. Thanks for enduring the criticism to make a difference for others.

@Tom Wagner I've started using DealCrunch when I want to get really detailed. Again it's not perfect but I'm not looking for perfect. Just something that works. More often than not, I just do a quick and dirty calculation to see if it cash flows (current rent x 0.6 - monthly amortized payment). I created my own MAO calculator in Google sheets specifically for BRRR deals since that's what I do. Since I'm not leaving money in the deals, if I can make it cash flow a minimum amount and my equity is 30% or more, that's all I need to know to go after the deal.

Thanks for the recommendation @Martin Neal

@Ryan McKimm I think you misunderstood my intention. I'm using the HELOC for down payments and any needed renovations. I will be financing them all with mortgages but this is the best way to make use of the equity in my house (which currently earns me a return of 0%) and start earning a return on that money.

I will likely be buying multiple properties using this money just for down payments on cash flowing rentals.

Thanks @Michael Dinos. I’ll take a look at it.

@Ross Gleason I am not going to be using all of it at once. I will be using it for down payments and repairs on multiple properties that I buy and then paying it off when I can so I can use it again later. The Line Of Credit keeps me from having to pay interest on all of it when I’m only using part of it.

Wow @David H., that does sound pretty strong.  Thanks for the information.  This will really help me find the best structure with my local bank.

Thanks @Cassandra Sifford. It sounds like the 10 yr interest only may be common and that would allow me to use refi’s to pay it off in a couple years.

Good luck on refinancing you line and auto. Now’s as good a time as we’ll ever see to borrow money from an interest standpoint!

@Guifre Mora thanks for a great answer.  The 12 month term is what has me worried.  12 months is not enough time to create enough cash flow from the investment to completely pay off the amount borrowed.  I think if it were structured as you say, in a 10/10 or 10/20, the repayment part would be easy to figure out.