All Forum Posts by: Ukaku E.

Thank you Mason. The HELOC is 7.7% while primary is 3.25% @15 years.

Hey there BP Community, I have been investing in real estate for about 5 years and have acquired 5 properties.  A couple of them were house hacked and we currently live a duplex right now and with no out of pocket mortgage payment.

We have the good fortune of having 80K on hand and are contemplating payoff one of our properties that has a 79K primary mortgage while keeping a 25K HELOC balance that is attached to the property.

My question is: Is there any risk we might not be considering regarding paying off a primary mortgage (788/month) when a HELOC (199/month) would then move from secondary position to first position lien - ie loan acceleration, change of terms, etc.

Our goal is to minimize monthly expense while starting up a 3D virtual tour servicing business.

Additionally, any alternative recommendations for the use of above mention funds?

Thank you 

Thank you Ernest!  That makes sense - there will be a need for both groups.

Hello everyone,  

This is my first post on BiggerPockets!  And...I want to pick your great minds.

My wife and I moved into a new DR Horton subdivision in New Braunfels, Texas back in April of 2018.  We factored in the possibility of moving out of the property 1 year later and converting the property to a rental.  From the analysis, we would appreciate a modest cash-flow.  

As the year mark is approaching here in April 2019, we are seriously considering moving and acquiring another property.  However, our concern that since the subdivision is still being built out (50% completed) and are worried that potential volume of tenants would be low as these tenants might opt out to buy instead of rent - therefore increasing the properties vacancy period.

From your experiences, is this a valid concern.  Thoughts?

Thank you in advance!