All Forum Posts by: Taylor Redden

There are definitely lots of different thresholds for loans when it comes to owner occupancy. I believe conventional loans require something like 50% owner occupancy, while FHA now only requires 30% (if other requirements are met, like HOA reserves).

I never even made it this far in the conversations I had with other banks. :(

Well, I'm looking to get a distressed property that might not qualify for financing. I'd like the ability to make cash offers to motivated sellers that can close quickly. 

If I can get a HELOC, I could use it to make a "cash" offer on a distressed property. Then I can move in and work on the house for 9-12 months paying on the HELOC, then once its in better shape to qualify for a bank loan (and hopefully after some forced appreciation) I can get it into a more suitable long term note.

My plan was to only make payments on the HELOC for 9-12 months, then get it refinanced into a fixed 15 or 30 year mortgage, paying off the HELOC, and of course, repeat.

Would it be worthwhile to ask a bank if they will do the HELOC, and explain that I want to do a full mortgage in the future, possibly with them, that way they could secure my long term business with them as well. Or would that look too foolish/risky to the lender?

I currently have two properties, one SFR I'm house hacking and a condo in a metro area that I have rented via Airbnb in the past and regular long term renters after that.

I only owe about $87,000 on my Condo, and its worth about $250,000. That's a pretty good chunk of equity I could use to finance my next deal, preferably an off market cash deal for a BRRRR property.

I recently refinanced my SFR (paying $100 less a month, and cut off 5 years on the term, win!), and while doing so, I tried to get a HELOC as well (both through US Bank). Unfortunately, even with my 800+ credit score, and a DTI ratio below 15%, they would not give me the HELOC because the Lexus report turned up that someone was renting it. Am I SOL because I rent that place out, even though I have massive equity and outstanding credit?

So I was thinking that my next step should be to start going to local banks and credit unions and seeing if they could work something out with me. 

What would be the best way to go about this? Just start cold calling banks and asking if they offer HELOC? This is my first time dealing with a HELOC, so I don't want to look like a dumbass and get turned away. I was thinking I could come in there with all my excel spreadsheets and financials, showing them I know what I'm doing, and doing well in my small, yet growing, REI business.

Does anyone have any good tips or "dos and don'ts" on getting a HELOC? 

I think you can still find some decent MLS deals in Chattanooga.

http://www.zillow.com/homedetails/1900-Ivy-St-Chat...

That place just sold for $42,000. It's super old, probably knob and tube wiring, but with that square footage and proximity to downtown, I think it could make for a great investment candidate.

Grant,

Please put me on your listen of potential buyers for homes in Chattanooga. I currently have property in Nashville and Cookeville, but I have been thinking about moving to and investing in Chattanooga. 

Hey Matthew, I'd love to meetup sometime and pick your brain on thoughts about the area, and approaches each other are taking. Maybe we could meetup at Spankies sometime? ;)

Thanks for the suggestion Cody, if there's not something in the area, then its the perfect opportunity to start something. I saw you work out of Hendersonville, TN. I was actually born at Hendersonville Hospital, and graduated from HHS. I also have family out in Chattanooga, and its awesome to see the change its gone through in the last 20 years. It now starting to remind me of what Nashville was about 20-30 years ago.

I got extremely lucky with my tenants when I moved out west. They would just drive to my bank, and deposit rent every month, and shoot me a text when they left the bank. My friend in Nashville offered to repaint my walls to a color they liked and I agreed on, added a tile backsplash to the kitchen, and mounted my flatscreen I was letting him use. I would pay for the parts, he would do the labor. I'll never get as good of a tenant ever again. 

Hello BiggerPockets! I've finally found a place that speaks to me. Investors being open about their deals, methodologies, and tactics, without all the scammy hype!

My name is Taylor Redden, and I'm currently work full time as a software developer hospice software, but I've always had aspirations of being a land lord, and making money from real estate. Ever since I went to college, and met some really great landlords, I knew it was the kind of job that spoke to me.

I graduated with a degree in Computer Science from Tennessee Tech, but absolutely fell in love with the town there. I bought my first house in 2008 and immediately started to house hack it, even though I didn't realize that's what you called it.

My next opportunity came in the form of a Condo building near downtown Nashville in 2011. I barely scrounged up enough cash to make the purchase, and I'm so glad I have. Over the next 5 years, I've seen my Condo more than double in value, driven by a hot Nashville market.

Most recently, I moved out to Central Oregon (Bend) for almost 2 years. I was amazed at the market there, and it really opened my eyes to how awesome REI could be. I moved back home to Tennessee, but decided to buy 2.2 acres out there for a very long term buy and hold deal. Its not only a place I want to appreciate for wealth, but a place where I want to be able to build a nice cabin in the woods (So to speak).

I love the small town college niche like Cookeville, and I would like to find other markets where the city size is under 100k, but the school population is over 10k. I also like up and coming markets similar to Nashville, TN or Bend, OR. Chattanooga, TN is on my radar and I think that is prime for future value.

I'm glad I found bigger pockets, as I figure out how to take my next steps into really getting serious about REI.