All Forum Posts by: Ver Andrew Starr

My mom owns a house outright but has a heloc on it (so technically not) but the estimated value is close to $200-250k. Is there any possibility to cash out refinance, pay off the heloc with some of that cash (lower rate potentially) and use the remainder to go buy another deal?

Any tax attorneys or professionals I can connect with to discuss details?

@Greg Dickerson definitely agree. The thing that sticks out to me is despite a recession, the deal is still 80 cents on the dollar so if one were to happen, hold and ride but if worst comes to worse, there’s a break even. Also, I would bank on people need a place to live regardless of a recession so rents should still hold even with a small dip

@Frank Wong yoooo I see your ads all over Facebook man. Thanks for your reply on my post. It’s good to hear some insight from you knowing well you’re successful outside the rule

@Arvi Carkanji I gotcha. Since it’s new builds, there’s less on capex and other expenses, Cashflow is break even or positive, hardly negative.

I’ve recently found an agent investor who has connections to builders in an area where newly constructed homes can go for $300-400k and purchased for about 80% that before being built. Thing is, rent in the area doesn’t meet the 1% rule even with these prices.

Goal is appreciation and being new construction there are other benefits like builder warranty and low closing costs. Renters are also abundant in the growing area.

Any opinions on this sort of situation even though it doesn’t meet the 1% rule?

@Daniel R Jenkins for sure. ARV comps shouldn't be that hard. Just put in your filters to houses sold that look like they don't need any work ie rent ready like u say. Then take 70% of that.

You say 100-500k so 70% is $70-350k.

The rehab costs will vary obviously so I would sync up with a contractor to do estimates for you. Maybe you can get a $50k house and do less than $20k in rehab and rent out for $800-1000. Just an example

@Ver Andrew Starr times *

@Daniel R Jenkins run comps on the area to get comparable ARVs. Then Tim’s that by .7 (70%) and if your purchase price + rehab costs are more than that, probably not worth it.

The idea is when u do this, u will want to rent it out then refinance. The refinance part will only be 70-80% ARV so u don't want to overspend.

@Mike S. Yeah I saw that as well. Interesting tho!

@Mike M. I’ll reach out to some advisors on the scenario for sure. I’m not gonna be put on her loan but just the title in addition to her.

From my research, that seems to be the best option but maybe there is another. Any CPAs or attorneys who can chime in?