All Forum Posts by: David W.

@Charlie Fitzgerald that is what I was afraid would happen. I am going to provide my information and see what they come back with. But I agree; this will most likely be the outcome.

I am looking at assuming a mortgage. The house is not on the market but in a very good area. The owner owes 87k; they paid about 97k for the home. The home needs about 5k worth of work put into it. It has new hvac, new windows. It is a pier and beam home. They don't want to bother putting it on the market they just want to sell it. They are family friends of ours.

I am thinking of assuming the loan. I immediate get equity and I have bought the home for a discounted price.  I can put about 5k into it, to put in new flooring/carpet and a few other minor repairs. It should be rent ready in 30 days.

Not getting into cash flow discussions, but any advice on assuming loans? It seems like its a very good option. The bank did ask if this was going to be my primary residence. It will be a rental property obviously and I am waiting to hear back if they will up the interest or something like that since it is not my homestead

Rule #1 is to buy under market value. It is very hard to do right now with low inventory high demand but it will be worth it in the end sticking to it.

congrats..you really were an investor 8 years ago though. Look at the equity you have now.

Welcome, I am an engineer in Dallas as well. I am currently seeking my 1st rental property.

Welcome from Dallas area

I am in Dallas and I am in the same situation. If you are interested, send me a direct message and we can talk every once in a while to share ideas and maybe learn from each other. I am looking for my first single family home as well at that same price range.

@Kerry Crandell I think what I have to have as a requirement is that when I buy the property I must gain equity immediately when it is bought. That way I can cash out refi and pay off the heloc and then use the heloc to buy another property when I am ready.

If I don't have a plan to pay off the heloc and I am stuck making payments on it, I wont have an out except to take my liquid cash and pay off the heloc, which I would rather not do. What do you think?

With the HELOC only allowed to be 80% of my home value I can't get to the point where I can get enough to pay for the rental entirely, my equity isn't low enough. But after some reading, it doesn't seem like 140-150 cash flow is that bad, especially when I didn't put any I my own money down. With the HELOC having a 10 yr draw and 15 yr term, if I paid on it based on 25 yrs that would help keep cash flow up, but I don't think I would want to keep it open that long. The other idea that was mentioned could be to find a property below value and then cash out refi to pay down the HELOC. I think it would be difficult to find a property 10k-15k below market value in Dallas, without requiring a lot of rehab. For my first rental I would like a turnkey home.

Also, if cash flow is around $140 and tenant placement is 100% of monthly rent, the 1st year would bring no cash flow only equity in the home.