834: Seeing Greene: Inherited Houses, HELOC Risks, and Our Favorite 2-Star Review

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 22 October 2023

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

About to take out a HELOC to buy an investment property? This could be a move you regret for years, ESPECIALLY if you’re doing this in 2023. As home prices have risen and real estate investors search for more money to invest, the HELOC (home equity line of credit) has become an obvious choice for many. But drawing from these lines of credit could come with a lot more risk than you might think and may tank your cash flow. David Greene is back on another Seeing Greene, live from Florida! But that’s not all; Rob (Robuilt) Abasolo is coming on to tag-team your real estate investing questions. They'll first talk to Tim, who wants to invest in real estate in high-priced Southern California. He has a townhome with some sizable equity but doesn’t know how to fund his first investment or make the most cash flow. David and Rob also hit on what to do with inherited or paid-off properties and how to scale when you lack the capital. Plus, we read a two-star review and combat it with a YouTube comment compliment from David’s secret admirer. Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can jump on a live Q&A and get your question answered on the spot! In This Episode We Cover How to turn your home into a rental property and investing in expensive areas When you should (and definitely shouldn’t) use a HELOC to fund your rental property purchase The super passive short-term rental “reverse” arbitrage model most landlords don’t know about Scaling your real estate portfolio even when you’re out of capital Inherited properties and how to make hands-off cash flow The smartest ways to fund rental property repairs and renovations And So Much More! Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-834 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the Bigger Pockets Pockets Show, 834.
0:04.2	Using a HELOC right now is not a bad idea if you could pay it back off, flipping a house,
0:09.0	making a loan, doing a burr, that kind of stuff makes sense.
0:11.8	But if you're doing this for the down payment of a house and you're locked in and it goes the
0:15.3	wrong way, the economy getting worse, tenants having a hard time paying their rent.
0:18.9	Now you're getting double squeeze and it could go pretty bad pretty quickly.
0:22.2	Even when you did nothing wrong, just the market turning against you.
0:25.0	What's going on everyone, this is David Green your host of The Bigger Pockets Real State
0:28.9	Podcast, the biggest, the best, the baddest real estate podcast in the world every week bringing
0:33.6	you the how-tos, answers, secrets, and strategies that you need to be successful in today's ever-changing
0:40.6	market.
0:41.6	Today we have a seeing green episode, I know that the consistent green light that is usually behind
0:46.8	me is not here, that's because I'm traveling, I actually came out to Florida a little bit
0:50.8	earlier to promote the book Pillars of Wealth on the value-tainment podcast as well as be ready
0:55.8	for BP con which is right around the corner in Orlando, I'll be driving there from my rental
1:00.6	in Fort Lauderdale where I am now and I brought some backup. Rob is joining me looking handsome
1:06.1	as ever to take your questions about real estate and give our perspective, the green perspective
1:12.4	on how they can be solved and today's episode is awesome. Before we get to it, we have a quick tip.
1:19.4	My quick tip is take care of your short-term rentals when you're staying in them. I walked into my
1:23.6	rental to record the podcast today before the cleaners came and I've noticed that there are fake
1:28.4	eyelashes all over the place. They actually look ironically like caterpillars and in Florida there
1:35.0	are caterpillars everywhere and one of them was moving and I thought it was one of the fake eyelashes
	...

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