All Forum Posts by: Tim Kaminski

Interested in following this thread. I have a HELOC ($50K) and am interested in using this as a downpayment as well but unsure how to pay off HELOC

@Jonathan Stone Nice!  Where in Cincinnati did you buy? I grew up there.  Would you consider your 4plex a homerun or base hit? Just curious how great of a deal I have to find to do what you did.  The adjustable rate was my initial fear.  I would much rather know the exact amount of my expenses each month

@John Morgan How did you pay off HELOC within a year? Just using all your cashflow to pay it down? Or refinance ?

@Victor S.I am looking at value add 2-4 unit multi families for long term buy and hold.  For paying off the principle, I guess I would have to refinance the property to pay it off? Which would end the money train unless I can refinance for more than my heloc

@Joshuam Rivera You are saying you will cashflow $700-800 after paying both loans, insurance, cap ex, maintenance etc? Or you are going to forgo saving for cap ex to achieve this? How are you planning on paying back the principle balance of HELOC?

@Joe Splitrock By "BRRRR decreases equity", you mean due to going from 100% equity to 20%, correct?

@Jason G. So you fully financed 2 deals with HELOC down payments. Were you still cash flowing? Were these homerun deals or base hits? Would you reccommend this strategy?

@Frank WongI see what you are saying. Unfortunately my personal funds are not at that level yet and properties in my market tend to be high, though not as high as yours I'm sure. So unless I find a great deal, HELOC may not be the best option at this time. Thanks for your responses

I'm trying to figure out how to use this money that I created through rehabbing to continue to grow my portfolio.  Would rather not continue to use personal funds if possible.  Do I need to wait for house to appreciate into the $100K mark and then refinance?

@Steve Vaughan So you support using HELOC for downpayment and finance the rest?

@John Warren You've used HELOC as majority of downpayment? How bad did that cut into your cashflow? How long did it take you to pay down fully?

@Frank Wong So you would support using HELOC to fully purchase property and then refinance out once rehabbed? How do you fully pay off homes? With just cashflow going to pay down principle?

If I can't pay off house fully with HELOC, you are saying to just use my personal money again to purchase another home? or mix personal with HELOC for downpayment? BC that would be almost 100% financed like you said not to do. Just trying to understand what you are saying

BP,

Have acquired my first property February of 2018.  Recently got a soft appraisal from my realtor and banker who told me they feel comfortable that I can get $50K out of the home to use on a new property.  I'm in Tampa, FL and mainly looking for 2-4 units so $50K doesn't get me anywhere close to my market prices($150-250K).  I know ppl invest with HELOCs and just wanted to understand how, exactly.  I put about 20K of my personal money into the purchase and rehab of property and was hoping to be able to pull out and recycle the money.

Options as I see them.

• Use $50K as a downpayment on property in my area.  That would mean I have loans on 100% of the property.  That sounds risky.  Do ppl do this?  
• Use $50K as "cash" purchase of OOS investment properties in cheaper market.  Refinance property to pull money back out.  Repeat  Again, risky with unknown market.
• Wait for $50K to grow to 100-150K.   Buy all cash and refinance. Risky as market looks like it may go down/level.  Can take years and years to reach this. 

LOTS OF RISK. I want to grow and use the money I have created.  Any ideas?