All Forum Posts by: Tim F.

I love this forum and I can't say how much I appreciate the comments and sharing of knowledge. My wife and I are getting close to starting our REI journey. We are pretty sure we know what we want to buy and where. We are also pretty sure we are going to utilize our HELOC for the down payment. One big problem is we are in an area where it is very hard to find deals. However, the area is VERY stable and low risk. My question is this, how much do you pay down with a HELOC? If I pay the minimum 20%, my cash flow will be low. I don't want a deal that cash flows less than $100/month. However, if I pay more than the 20%, my cash flow will go up. What is the cost/benefit of utilizing the simple interest of the HELOC vs the amortization of the investment mortgage? Is there a "sweet spot"?

Honestly probably turnkey. But if I refi a little extra I could use that to rehab.

I guess my main question would be, what is best for long term financial cost/gain? If we refinance, we go back to square one and start paying a lot of interest on our primary residence. The only positive would be making my equity work for me.

My wife and I have discussed moving and while it makes the most sense financially, it doesn't for our family plan. If we wanted/needed to upgrade anyway, then sure. But we don't want the hassle of moving.

If the numbers work out and we are able to be cashflow positive, what would be the best option with the above numbers?

Hello all, I am new to the business and very eager to get started. I have been doing much research and I really want to get into the game, however I am not sure how to fund a rental. I live in Northern Virginia where deals aren't typically amazing so my understanding is the best bet is buy and hold since I'm in a pretty stable market. I know some folks that break even with cash flow but they are willing to hold since appreciation is so stable here.

What would you do with what I have:

I currently am in a home with 20 years left on the mortgage. We owe 280 and it is worth 550-600 (depending on who you ask). I am interested in townhouses that cost approximately 350-450K.

1. What is the best way to finance the rental?
2. Should I save up for the down payment or leverage my equity?
3. If I leverage equity, should I go for 15 year Investment loan or 30 year and pay it down? Or maybe don't pay it down.
4. Should I do cash-out refinance or Heloc for the investment down payment?

I am finally on the principle building side of my primary mortgage so starting the loan over makes me nervous but if it makes sense then I'm in. Any and all input is appreciated. I know there's A MILLION ways to finance so I'm interest in hearing what YOU would do if you were me.