All Forum Posts by: Thomas J. Clifford

I needed the same breakdown too Derek. I caught myself operating from a BRRRR standpoint (which seems to mostly operate on buying the property full in cash), and was making the assumption that somehow, somewhere, I was at 100% equity in my own home. Felt embarrassingly silly for not realizing that the remaining balance on my CURRENT loan still had to be paid off by the majority of that refi cash-out!

Just curious - have you read the "No and Low Money Down" book yet? That's next on my list to see about other ways to pay for my first property, and wondered if you recommended it.

T.

Newbie post here as I still tackle some of the basic learning concepts before buying my first investment property.

I have *some* money saved up (10K, which is not much at all in my market where 3/2's go for 140-190k). I'm looking to get started but at this time I don't have enough of a reasonable buffer that is recommended for first time buy and hold investors. I have been strongly considering a cash-out Refi of my home which would net about $50k of capital to work with. I've also been advised by an investor I consider a possible mentor to look into a HELOC to start making moves with.

My question is this: I feel like we're looking at being at the height of the market (Yeah, I know nobody has a crystal ball - but pricing in my area really just seems higher than it should be at). If I do a cash out refi - that locks me in at the property value at what *I* think might be at the height of the market, right? Does that put me in a tough spot when the market starts to correct itself, and my primary resd. starts to lose value compared to the refi I might take out on it? Is it better to refi when interest rates are higher, but values are less inflated? Does that even make sense, or am I not seeing this from the correct perspective?

What about the HELOC option? Does anyone have general advice or info on how a HELOC might be impacted when it is opened when the market is high, but mostly operates during the down turn? 
 
What options might you recommend (Short of straight cash) that fare best when the market *might* be at its peak before dropping? What were effective strategies that investors used in 07-08 that helped keep them insulated from the dropping market?

I HATE being the guy who asks for general answers while also being vague, but I'm more interested in the basic mechanics of how these options behave when they start in a high market and then operate in a falling one. I appreciate everyone's insight!

Thanks in advance!

T. 

Hi Kevin! We recently had the first small meetup with @Shawn K Hicks on Tuesday that was really a great opportunity to meet similarly minded people in the area. Next time we set that up, you should come!

I'm in the same spot as you in terms of wanting to educate myself with a focus on rental properties and Section 8 housing, and I definitely took a lot away from Tuesday's meeting. Keep listening and reading man!

That property is around the corner from the Sheriff's Office where I work, but I typically cant get out of the office until closer to 11:30. Cool if I meet up with ya'll at Maudes?

T.

Good to meet you guys! There was talk about a Gville meetup a few months ago, but nothing ever got nailed down. Same as Jennifer, I'd be interested in getting together. Do any of you guys know folks who are established investors in the area? (Awesome job on your first property, @Jennifer Turner)

T.

I forget the episode of the podcast where the guest talks about his lease, but if I remember correctly he offered to have Brandon Turner post it in the show notes, so you might be able to find it. I want to say its somewhere between 10-35.. He said it was somewhere in the area of 15 pages long, and he has the applicant initial each paragraph while going through it with them. You may want to listen out for that and see if you can find a version of it.

T.

This would be a great thread for newbies on the different kinds of curveballs that they might not be aware of. Good catch!