All Forum Posts by: Aariff Kadar

Got it.

@Natalie Kolodij

I always file married jointly and our income is past 200K, So in this case, i will not be able to use the loss to cut own my taxes from day job. Am i correct?

I have a day job and i am planning to buy a new primary residence by renting out my current residence.

Questions:

 I will get rental income of $36,000 and expenses of $44,000 (Includes mortgage insurance, property tax and depreciation), will this offset help saving taxes from my day job? Is here any restrictions, i need to consider?

I am also planning to use the mortage insurance and prperty tax from the new property which i am planning to buy?

Am i missing anything? Do i have to know anything before i take any major steps?

Aariff

@Ola Dantis Yes i have similar plan as well. Hrbrid of 4 an d5.

I have 6 months to do this and i will save some money for down as well as cash down refinance.

Aariff

I notice many people suggesting option 3 but I am more inclined towards option 5. Irvine is high priced Area, I cannot buy a multi Family home with this down. Buying a single family house is downsizing my current house by paying more on mortgage. Option 5 will give me more tax benefit and tenants will be paying for my down and mortgage. 

Yes it my fifth option. Cash down refinance. Only fear is I am borrowing more money from mortgage companies.

I own a home (primary residence) in Corona, California and i am planning to buy another house in another expensive area (Irvine, CA) which is close to work place because i am spending 2 hours in traffic everyday.

My current residence is in 15 years mortgage and paying $3000 as monthly mortgage plus tax and insurance. I have almost 300K equity on it.

I have come up with few options and i have listed below. I am in dilemma on which one will be good for me.

If  i rent my current residence, it does not give positive cash flow because i am on 15 years mortgage and i end up paying Tax and Insurance after mortgage payment from rent.

1. Borrow money from 401K and buy new primary residence with 10% down (i need to pay back 401K in 5 years)

2. Rent a house in the new area, Rents are expensive in Irvine, CA. 900 - 1000 sqft apts rent for $2500, my corona home will rent for $3000.

3. Sell my corona house and make 250K to 300K down for new house in irvine

4. Save some money for 10% down and buy house in irvine, CA

5. Cashdown refinance my current property to 30 years loan, which will make my mortgage as $1900 plus tax and insurance. I am hoping $200 to $400 postive cashflow

Which option will you suggest for me to move ahead. I am planning to take action during next summer.

I had a water leak during rain through a kitchen vent. I had a construction company (i think he is not licensed, never provided his license and nothing available in his invoice) for estimation and received quotation and agreed to start the work. This construction company sub contracted the work to two different companies for two different work. one of the actual licensed contractor came opened my vent and said it is not only fix in the stucco and he said he will send back the construction company. meantime, i had the work done through another contractor because the construction company delayed the call and once when he called i said the work has been taken care and no need of his visit.

now after 2 months he has send me invoice to pay and when i said i will not pay because no work was done and no advice also provided by his sub contractor, he told me he will send it to collections.

what are my options now? can they send it to collections, they have my address and name, how they can impact my credit score? even if they send it to collections, can i tell the collection agency that i don't owe anything.

The amount is less but i don't want to pay for nothing.

Thank you everyone for the reply

 If you are not looking for cash flow but only for appreciation, CA is the market, else look for out of state