Time for a Heloc!
Ouch! Just tallied last months expenses. Apart from the rent,food, $600 for new tires/brakdes and $900 insurance premium, I had quite a lot of expenses.
$6k landscaping
$16k unexpected request for a downpayment on a house [1031 shortfall that the loan officer should've caught, but she was in the hospital for 3 weeks]
$9.8K 10% downpayment on a house in indiana
$4.4k 5% downpayment on another house in indiana
$4k in plane tickets
$2k lawyer fees for misc stuff.
Out of these, i was expecting only $20k in expenses so i’m over by $24k, which leaves me without sufficient reserves in case I have a few properties vacant for more than a few months. Time to get a HELOC out on my investment properties and pull some cash out!
You always want to do this before you need money. When you do need, the bank won’t lend it to you.
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December 14th, 2005 at 4:29 pm
Absolutely agree with your idea to have HELOC ready (just in case), also good idea to have portion of HELOC with locked rate. BTW – I love to read your columns, checking your page ob daily basis for any news. Your are my virtual mentor. Thank you. Nina
December 14th, 2005 at 4:44 pm
Thanks Nina, thats very kind and encouraging of you!
let me know how your investments are doing too!
December 15th, 2005 at 6:39 am
Do you need a bird dog in Indiana? I am in the Greater Indianapolis Area, and I would love to get some experience before I take the leap myself.