All Forum Posts by: Account Closed

Patrick Ryan the 3.75% was on my rental because that was also a promotional rate, credit unions seem to be more flexible and forgiving on some matters. Now the rate is at 4.75% which is still great at penfed CU.

Hello everyone, When using the BRRRR strategy I always notice the refinance has many questions. A Home Equity Line of Credit seems to be the best option to use when refinancing a property using the BRRRR. I took out a HELOC on my first rental property in 2015. I got my HELOC from my credit union at 15 years interest only 3.75% APR with a promotions rate of 2.99% for one year on the first withdraw. I paid 0 closing cost as long as I don't close the account within 2 years and the appraisal was fast, I just needed $230K and it close in 4 weeks. I called many banks and done many research about applying for a HELOC or Conventional/other loans to refinance my next BRRRR property. The result HELOC WINS. 1- HELOC has zero closing cost. conventional/other loans you pay closing cost. 2- HELOC has 2 ways of doing the appraisal at no cost and faster. Conventional/other loans 1 way and sometimes at your own cost. 3-HELOC close faster 3-4 weeks. Conventional/other loans need at least a month. 4-HELOC offer a fair 4%-5% on investment properties. Conventional/other loans offer about the same if you pay points on some. 5-HELOC has no seasonal 6-12 month period. Conventional/other loan have the seasonal rule. 6-HELOC lets you refinance to increase your line of credit if you notice your home is worth more than it did when you first applied at no cost. Conventional/other loan is a period you must wait to refinance and most have a early payoff % or fee and if you get denied, you are stuck with paying the fees it took to process your application and such. 7-HELOC There's no mortgage loan limit of 4 or 10, you could have HELOC on all your properties. Conventional/other loans there is a 10 loan conventional limit then you would have to settle for a portfolio loan which the APR is much higher. HELOC has only 1 down fall, the property must be free and clear to maximize the loan, so if you have a HML, it won't work and most HELOC want first lien. PLEASE NOTE-not all conventional/other loans are what I had mention. I'm sure some of you got a great APR,no closing cost ,fast closing and etc, but majority of loans are in comparison.

I like your motivation, good job

I do see one mistake from a contractor point of view, you should not be paying anyone's heat/gas/oil. I would had rip and taken that oil tank out and install separate gas meters so each tenant would pay there own gas. It would had cost an extra $5000 and time which I understand you were in a hurry to get the HML out the way but it's still not too late to do so plus is one less expense/stress you don't need to deal with in the long run.

I did not know contractors in any location would charge per hour rate, I'm in the NYC market and everything is pay per day or per job. My advice is to negotiate with the contractor, I would never pay any contractor/laborer per hour.

Amanda Groover I have confidence in what I read so far that you will do well in this business. Your husband is a contractor and that's 50% of the key in this business which is rehab to flip,rent, buy and hold and etc. Your a teacher and I'm sure your good with numbers, that's the other 25% being good with numbers so you could analyze your budget, cash flow, deals, profit and etc. You have all the tools and the advantage than what most investor had when they first started.all mentors will charge a fee or programs of $5k-$30k, you don't need a mentor because you already read the REI books and now all it takes is making that first deal happen. Hands on training does help and if that's something you must have then you have to partner up with another investor on a few deals and split 50/50 on everything. Don't worry you will be fine, I'm in the NYC market and its tough here but I never failed because I have an edge of being a contractor.

Send me a PM and we could discuss in more details

yes take everything down and replace it with drywall,  no need to rewire, it would save you more $$$

Old house has old plaster, lead paint, asbestos pipes and etc, do a full gut renovation inside, would be about $50K

Forget NYC for now, the next market crash you will be able to find deals in NYC, start in NJ the prices are great for beginners for flipping , wholesale, renting etc. I have done a flip and rental in NYC and it was not easy. High demand but low supply