HELOC Frostbite — OUCH

[EconProf]

BobS
meadandale: I see your point.
To clarify, the (roughly) $100k HELOC money would be added to about $150k other money, which should be enough to buy a decent rental or flip candidate at the bottom.
Once the property is fixed up, could flip it or get new first mortgage. Then…on to the next one.

[NotCranky]

“Dave Ramsey, who’s advice can be good and bad, implores people to pay off their house rather than use the money for investments. He asks, “Would you borrow money against your house to play the stock market?”. Most people immediately respond in the negative. Apparently a couple of people here haven’t gotten the memo.

Hopefully ocrenter won’t be posting about them in the near future.”

Meadandale. I have had my house paid off before and I can pay it off again. However, If I can borrow at 5.62% fixed, build a rental unit on property I own ,increasing my equity cushion and get more than enough money in rents from it to pay the mortgage and also pay my property taxes and insurance, leave me with half the principle collecting 3% for a down payment on a fixer property, which is then going to cash flow and have equity because of the down payment, any speculative skills I may have employed and sweat enhancements to the property. I also get a tax write off on the interest. I like that better than having my house paid off. Oh yeah I get to live and work the way I like to. I will be at about 30% LTV on the first two houses even after another 20% depreciation and the third will about 50%-70% with no likely future depreciation and producing cash flow.

I am not e-balling. It doesn’t amount to a fortune.It is hard work and a struggle. Time will tell if I pull it off, should be able to though, it is pretty well in motion. I don’t go back to square one under any conditions. Just showing that not everybody responds negatively about the question regarding using equity to invest. I would not put it into the stock market but that is just me. I don’t think there is anything wrong with it in rational applications. I have friends who are skillful in trading who have done it. I don’t see the difference between real estate wealth and money making and stock ownership wealth and money making, except for the liquidity issue, tenants, a few tax details and that you can’t have a BBQ in, or add a master suite to your stocks.
In an appreciating RE market and bull stock market one could have their real estate going up and real estate equity in stocks going up,well above the historically low interest rate they had locked in too. That is pretty cool in my book. I think a few piggs can say “been there done that”. “No balls no blue chips” as we used to say in the navy.

I don’t think I resemble the types of people ocrenter profiles. I was selling when they were buying.When I had equity, I didn’t trade up. I bought a piece of property cash and built a modest house, also cash, the one I live in now and which is enabling this plan.

Good Luck.

[NotCranky]

“Dave Ramsey, who’s advice can be good and bad, implores people to pay off their house rather than use the money for investments. He asks, “Would you borrow money against your house to play the stock market?”. Most people immediately respond in the negative. Apparently a couple of people here haven’t gotten the memo.

Hopefully ocrenter won’t be posting about them in the near future.”

Meadandale. I have had my house paid off before and I can pay it off again. However, If I can borrow at 5.62% fixed, build a rental unit on property I own ,increasing my equity cushion and get more than enough money in rents from it to pay the mortgage and also pay my property taxes and insurance, leave me with half the principle collecting 3% for a down payment on a fixer property, which is then going to cash flow and have equity because of the down payment, any speculative skills I may have employed and sweat enhancements to the property. I also get a tax write off on the interest. I like that better than having my house paid off. Oh yeah I get to live and work the way I like to. I will be at about 30% LTV on the first two houses even after another 20% depreciation and the third will about 50%-70% with no likely future depreciation and producing cash flow.

I am not e-balling. It doesn’t amount to a fortune.It is hard work and a struggle. Time will tell if I pull it off, should be able to though, it is pretty well in motion. I don’t go back to square one under any conditions. Just showing that not everybody responds negatively about the question regarding using equity to invest. I would not put it into the stock market but that is just me. I don’t think there is anything wrong with it in rational applications. I have friends who are skillful in trading who have done it. I don’t see the difference between real estate wealth and money making and stock ownership wealth and money making, except for the liquidity issue, tenants, a few tax details and that you can’t have a BBQ in, or add a master suite to your stocks.
In an appreciating RE market and bull stock market one could have their real estate going up and real estate equity in stocks going up,well above the historically low interest rate they had locked in too. That is pretty cool in my book. I think a few piggs can say “been there done that”. “No balls no blue chips” as we used to say in the navy.

I don’t think I resemble the types of people ocrenter profiles. I was selling when they were buying.When I had equity, I didn’t trade up. I bought a piece of property cash and built a modest house, also cash, the one I live in now and which is enabling this plan.

Good Luck.

[NotCranky]

“Dave Ramsey, who’s advice can be good and bad, implores people to pay off their house rather than use the money for investments. He asks, “Would you borrow money against your house to play the stock market?”. Most people immediately respond in the negative. Apparently a couple of people here haven’t gotten the memo.

Hopefully ocrenter won’t be posting about them in the near future.”

Meadandale. I have had my house paid off before and I can pay it off again. However, If I can borrow at 5.62% fixed, build a rental unit on property I own ,increasing my equity cushion and get more than enough money in rents from it to pay the mortgage and also pay my property taxes and insurance, leave me with half the principle collecting 3% for a down payment on a fixer property, which is then going to cash flow and have equity because of the down payment, any speculative skills I may have employed and sweat enhancements to the property. I also get a tax write off on the interest. I like that better than having my house paid off. Oh yeah I get to live and work the way I like to. I will be at about 30% LTV on the first two houses even after another 20% depreciation and the third will about 50%-70% with no likely future depreciation and producing cash flow.

I am not e-balling. It doesn’t amount to a fortune.It is hard work and a struggle. Time will tell if I pull it off, should be able to though, it is pretty well in motion. I don’t go back to square one under any conditions. Just showing that not everybody responds negatively about the question regarding using equity to invest. I would not put it into the stock market but that is just me. I don’t think there is anything wrong with it in rational applications. I have friends who are skillful in trading who have done it. I don’t see the difference between real estate wealth and money making and stock ownership wealth and money making, except for the liquidity issue, tenants, a few tax details and that you can’t have a BBQ in, or add a master suite to your stocks.
In an appreciating RE market and bull stock market one could have their real estate going up and real estate equity in stocks going up,well above the historically low interest rate they had locked in too. That is pretty cool in my book. I think a few piggs can say “been there done that”. “No balls no blue chips” as we used to say in the navy.

I don’t think I resemble the types of people ocrenter profiles. I was selling when they were buying.When I had equity, I didn’t trade up. I bought a piece of property cash and built a modest house, also cash, the one I live in now and which is enabling this plan.

Good Luck.

[NotCranky]

“Dave Ramsey, who’s advice can be good and bad, implores people to pay off their house rather than use the money for investments. He asks, “Would you borrow money against your house to play the stock market?”. Most people immediately respond in the negative. Apparently a couple of people here haven’t gotten the memo.

Hopefully ocrenter won’t be posting about them in the near future.”

Meadandale. I have had my house paid off before and I can pay it off again. However, If I can borrow at 5.62% fixed, build a rental unit on property I own ,increasing my equity cushion and get more than enough money in rents from it to pay the mortgage and also pay my property taxes and insurance, leave me with half the principle collecting 3% for a down payment on a fixer property, which is then going to cash flow and have equity because of the down payment, any speculative skills I may have employed and sweat enhancements to the property. I also get a tax write off on the interest. I like that better than having my house paid off. Oh yeah I get to live and work the way I like to. I will be at about 30% LTV on the first two houses even after another 20% depreciation and the third will about 50%-70% with no likely future depreciation and producing cash flow.

I am not e-balling. It doesn’t amount to a fortune.It is hard work and a struggle. Time will tell if I pull it off, should be able to though, it is pretty well in motion. I don’t go back to square one under any conditions. Just showing that not everybody responds negatively about the question regarding using equity to invest. I would not put it into the stock market but that is just me. I don’t think there is anything wrong with it in rational applications. I have friends who are skillful in trading who have done it. I don’t see the difference between real estate wealth and money making and stock ownership wealth and money making, except for the liquidity issue, tenants, a few tax details and that you can’t have a BBQ in, or add a master suite to your stocks.
In an appreciating RE market and bull stock market one could have their real estate going up and real estate equity in stocks going up,well above the historically low interest rate they had locked in too. That is pretty cool in my book. I think a few piggs can say “been there done that”. “No balls no blue chips” as we used to say in the navy.

I don’t think I resemble the types of people ocrenter profiles. I was selling when they were buying.When I had equity, I didn’t trade up. I bought a piece of property cash and built a modest house, also cash, the one I live in now and which is enabling this plan.

Good Luck.

[NotCranky]

“Dave Ramsey, who’s advice can be good and bad, implores people to pay off their house rather than use the money for investments. He asks, “Would you borrow money against your house to play the stock market?”. Most people immediately respond in the negative. Apparently a couple of people here haven’t gotten the memo.

Hopefully ocrenter won’t be posting about them in the near future.”

Meadandale. I have had my house paid off before and I can pay it off again. However, If I can borrow at 5.62% fixed, build a rental unit on property I own ,increasing my equity cushion and get more than enough money in rents from it to pay the mortgage and also pay my property taxes and insurance, leave me with half the principle collecting 3% for a down payment on a fixer property, which is then going to cash flow and have equity because of the down payment, any speculative skills I may have employed and sweat enhancements to the property. I also get a tax write off on the interest. I like that better than having my house paid off. Oh yeah I get to live and work the way I like to. I will be at about 30% LTV on the first two houses even after another 20% depreciation and the third will about 50%-70% with no likely future depreciation and producing cash flow.

I am not e-balling. It doesn’t amount to a fortune.It is hard work and a struggle. Time will tell if I pull it off, should be able to though, it is pretty well in motion. I don’t go back to square one under any conditions. Just showing that not everybody responds negatively about the question regarding using equity to invest. I would not put it into the stock market but that is just me. I don’t think there is anything wrong with it in rational applications. I have friends who are skillful in trading who have done it. I don’t see the difference between real estate wealth and money making and stock ownership wealth and money making, except for the liquidity issue, tenants, a few tax details and that you can’t have a BBQ in, or add a master suite to your stocks.
In an appreciating RE market and bull stock market one could have their real estate going up and real estate equity in stocks going up,well above the historically low interest rate they had locked in too. That is pretty cool in my book. I think a few piggs can say “been there done that”. “No balls no blue chips” as we used to say in the navy.

I don’t think I resemble the types of people ocrenter profiles. I was selling when they were buying.When I had equity, I didn’t trade up. I bought a piece of property cash and built a modest house, also cash, the one I live in now and which is enabling this plan.

Good Luck.

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