Real Estate Investing with Coach Carson

#362: How a Couple Used a HELOC to Buy their 4th Rental Property

Sep 23, 2024

Kelli, a savvy real estate investor, shares how she and her husband transformed a distressed property into a profitable rental, leveraging a $223K HELOC. They discuss innovative budgeting strategies, overcoming challenges like mold and water damage, and successfully executing the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method. Kelli highlights the importance of hands-on skills and effective negotiation tactics in navigating the competitive property market, providing valuable insights for aspiring investors.

37:17

Creator website

Episode guests

Kelli

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

The couple leveraged a $223K HELOC to transform a distressed property into a profitable rental, showcasing innovative financing strategies.

Their disciplined budget management and negotiation skills enabled successful renovations under budget, resulting in significant forced appreciation and positive cash flow.

Deep dives

Utilizing HELOC for Investment

Taking out a Home Equity Line of Credit (HELOC) allowed for the acquisition of a new rental property without traditional financing. After purchasing their primary residence for $318,000 four and a half years prior, its value appreciated to over $500,000, enabling the owners to secure a HELOC worth $223,000. This financial tool enabled them to operate as their own lender, which minimized reliance on external investors or partners. By leveraging their equity, they were able to quickly jump into the property market and pursue their next investment endeavor.

Intro

2min

From Patents to Properties: A Real Estate Journey

10min

Transforming Neglected Properties into Valuable Investments

2min

Strategic Property Valuation and Successful Negotiation Tactics

2min

Navigating Challenges in Foreclosure Purchases

3min

The Chicken House Renovation

8min

Maximizing Real Estate Investment: The BIRS Strategy

12min

⭐ Join Rental Property Mastery, my community of rental investors on their way to financial freedom: http://coachcarson.com/rpm

🎙️ Episode #362 – Kelli and her husband used a $223K HELOC to turn a distressed property with mold and water issues into a $2,750/month rental. By staying under budget and securing a higher appraisal, they successfully executed their BRRRR strategy. Kelli shares the secrets behind their success and offers practical advice for aspiring investors!

▶️ Next Episode: How to Estimate Repair Costs for Your Next Rental Property

https://podcasts.apple.com/us/podcast/339-how-to-estimate-repair-cost-for-your-next-rental/id1448707654?i=1000652540659

📄 Show Notes: https://www.coachcarson.com/helocbrrrr/

🎬 Timestamps:

00:00 - Meet the couple who took out a $223K HELOC

01:32 - Kelli’s Rental Portfolio & Real Estate Investment Journey

04:34 - Using a HELOC for Property Investment

06:15 - What is a HELOC?

08:56 - Finding the New Property

12:14 - Numbers and Budget for their New Property

15:02 - Property Inspection and Challenges

18:09 - Repair Stories and Project Management