All Forum Posts by: Shon Drennan

Hello, my wife and I have about 150k equity in our home are wanting to do a HELOC and use that to buy some STRs. I have a few questions since this is my first time doing this and research online seems to be pretty basic information but hopefully BP can help me with some clarity. My questions are:

What are some things to look out for when doing a HELOC? Risks, additional fees, or unexpected things, etc.

What types of terms are more investor friendly? I've seen different length draw periods and rates differ.

Our plan is to use the HELOC to put 20% down, do some light renovation, and fill the property with everything needed for a STR, then roll that into a standard mortgage and pull our money back out to pay off the HELOC. Is this logic sound or do I need to reevaluate this strategy?

Are there any recommendations for lenders that do HELOC's that are investor friendly?

Thanks for any and all input.

Hello, my wife and I have about 150k equity in our home are wanting to do a HELOC and use that to buy some STRs. I have a few questions since this is my first time doing this and research online seems to be pretty basic information but hopefully BP can help me with some clarity. My questions are:

What are some things to look out for when doing a HELOC? Risks, additional fees, or unexpected things, etc.

What types of terms are more investor friendly? I've seen different length draw periods and rates differ.

Our plan is to use the HELOC to put 20% down, do some light renovation, and fill the property with everything needed for a STR, then roll that into a standard mortgage and pull our money back out to pay off the HELOC. Is this logic sound or do I need to reevaluate this strategy?

Thanks for any and all input.

@Ramon Flores awesome thank you

@Phil Olinger thank you!

Hello i'm new to investing. I've been doing the prep work of saving money, researching, reading, and just learning about real estate investing. Im wanting to start analyzing deals but i'm not sure what to look for, how to price things, what comps are actually comparable, or what not to do or develop bad habits. Is there any good starting advice for someone new to start to analyze deals? Thanks

Hello i'm new to investing. I've been doing the prep work of saving money, researching, reading, and just learning about real estate investing. Im wanting to start analyzing deals but i'm not sure what to look for, how to price things, what comps are actually comparable, or what not to do or develop bad habits. Is there any good starting advice for someone new to start to analyze deals? Thanks

@Kelly N. Thank you so much that was incredibly helpful

I'm curious if someone can explain this so I can understand how refinance works. If I were to finance a house for $100,000 then later refinance for $150,000. How is it that you make $50,000? Would that not just be an extra $50,000 into the loan making the monthly payments higher? Or is this something that would only work if cash were paid for the house? And if that's the case wouldn't that lead to having a loan on the house and having to pay monthly payments? Any information explaining this would be greatly appreciated. Thanks all!

@Jason Coyle this is not a distressed property. It is more in ready. The family friend selling it is a trust fund recipient and doesn't want to deal with the trouble of getting a realtor and selling so he said he would sell it for $100,000. The only work that will need repairs is some dry wall in 2 of the bedrooms, all windows, and the back door will need replaced.

@Ray Johnson thank you that was incredible helpful! The rent in the area is roughly 850 to 950 for this type of house in this area. It's the nicest one in the neighborhood. I am planning to use a first time home buyers loan so money down would be minimal i'm assuming. He did ask that I cover closing costs since he is giving such a good deal on it. I would live in it while doing the minimal repairs needed for rehab and it sounds like rehab and sell would be the best option from these responses