All Forum Posts by: Ash Hegde

If you are going to keep the draw on your HELOC out long term, look for one that allows you to fix the draw so you don't have to worry about future rate increases. Also be aware that the HELOC payment will add debt to your DTI which could influence qualifying for future mortgages. Sometimes a refinance to pull equity will result in a lower monthly payment than your current mortgage plus HELOC payment.

Nice profit there, well done! 

Really good ideas on moving booking off the big sites and over to your own private bookings. You never know when they will change their terms/commission rates so getting it under your own control makes a lot of sense. 

When cash flow is tight it becomes a play on appreciation of the property value but also appreciation of rents over time. It takes more work to find the right properties with these prices and interest rates but they are out there. Perhaps a value add property where you can increase the rent after some improvements. A good agent may have connections to find a better deal for you than what you see on the MLS. It's really hard to tell when rates will come down, so I wouldn't bank on a refinance for a lower payment any time soon. If you're in it for the long haul you will get that opportunity though! Best of luck and feel free to connect if you want to talk more.

As mentioned above, a money partner, private capital from people you know, or getting equity from your home are all good options. Happy to talk more about your situation and possibilities if you want to connect and send me a message. 

I would try to find a way to get the credit cards paid down and the score up before doing a cash-out refi. A personal loan seems like a decent possibility. You are really going to get a bad refi deal with a 600 score. 

A HELOC is a line of credit backed by the equity in your home, it works like a credit card and you are only charged interest if you draw money from it. It will have a variable rate (though some will have a fixed rate option on a draw). A home equity loan is a lump sum of cash using your equity, you'll get all the cash up front, usually on a fixed rate.

Someone who has had one of these done should be able to give a better answer, but one of my questions would be the dollar value of that type of property so you know your reward for taking that risk. Sounds like they are disclosing an aggressive but defensible position. Not sure if that's a common comment from cost seg providers. 

That's the basics of it, yes. You are buying the property and getting title, but rather than getting your own mortgage you will be taking over theirs. If there is equity in the home, you may have to pay the seller for it (depending on the deal you make), but it would be yours after the transaction. 

For lending, it's true that 4 or less units is considered residential, but for permitting and local codes it may not be the same rule. Looks like @Eric Greenberg gave you good info.