All Forum Posts by: Tia Wilson

Thank you so much. Yes I actually went to Pen Fed since they were highly recommended here. They won't move forward bc of the Combined Loan to Value (CLTV) amount. Im sure you are familiar but if any newbies like me reading this post and trying to get a HELOC be mindful of that before you start your app. Lesson learned for me. Now I'm back to square one. With rates rising I have no idea how I'm going to pull out my $50K in equity.

Hey there everyone,

I'm new to Texas and im trying to understand the rules for a HELOC for my duplex househack. I understand we can't do more than 80% LTV in Texas but I apparently misunderstood how this works as I was denied today BEFORE an appraisal was even ordered. So before I put my negotiating hat on tomorrow I wanted to further educate myself.

The way I understand it HELOCs work ARV-current mortgage balance= equity. I can HELOC 80% of equity amount.

However bank says its current mortgage balance + requested HELOC amount must equal 80% of ARV or more.

This didn't make sense to me but wanted to ask if anyone had different experience?

Thank Andrew. 

Trevor, I actually had a guy explain this strategy to me last night at a meetup. Very intriguing strategy. 

Vijaianand, that actually does thank you. Im glad I asked bc it seems there are many variations to this strategy. It was a little confusing to me but I think I got it. The hard part looks like its going to be acquisition. Seeing how I can make the BRRR happen with a property and if it doesn't, move on.

Thanks Carini. Yes I read the book. I was needing to talk to more experienced BRRR investors to solidify the concept.

Thanks Kevin, 

That actually helps a bunch. It is really hard to find deals that fit that. Maybe I should be more flexible and be open do acquiring rentals the traditional way as well. It just sucks because I won't be able to get my money out right away.

Ok now I see why the funnel is so important. You have to constantly put offers in bc you're going to get a bunch of no's on the low ball offer IOT get the one yes. And Houston is tough right now! lol. But I got it now. Thanks yall for solidifying this concept for me. 

See thats what I thought at first. I thought it was 75% of arv bc when I go to REFI the bank will only do 75% LTV.

Thank you so much

I just finished the BRRR Book and I'm trying to understand the purchase process. IOT to properly BRRR I would need to buy a house roughly 75% undervalue, correct? For example if I saw a house for sale for 180K I would need to buy it at around 135K? Can any BRRR vets help me out please? Thanks yall.