All Forum Posts by: Amar Amar

Yes, lookup interest tracing. Essentially you deduct (or don't deduct) interest on a loan based on what it was used for not necessarily where it came from. E.g. your HELOC is on your primary, but the interest isn't deductible against your primary residential expense, it is deductible against the investment property.

Matt - Thank you, that helps.

0 Votes

Columbia, Maryland

Hello,

I bought an investment property with cash from the HELOC on my primary residence. Can I deduct this interest payment as expense on my investment property to offset the rental income?

Thank you for the responses/help.

1 Vote

Columbia, Maryland

Hello,

Seeking some advice from the experts in the group on rental property investing in Acocreek, MD. There are hardly any areas in DMV ( DC-Maryland-Northern Virginia) where you can have a cash flow. I’m considering Acocreek because of its proximity to DC, Airforce base and many other job locations and will be able to break-even after 20% down. Appreciate any advice/information.

Thanks!

0 Votes

Washington, DC

Quote from @Ben V.:

There's a lot here to pick at but maybe I can offer another way.

Place an all cash offer on the investment property. However add an addendum that you are using financing first and if the financing falls through because you are unable to achieve it, you'll still purchase the home cash.

This is exactly how Ribbon works, but instead you are just using your own funds instead of someone else's. You can save yourself thousands by placing a cash offer.

This is an interesting approach! Thank you for sharing.

0 Votes

Germantown, Maryland

Quote from @Aaron Schrader:

Check this loan out: https://www.cmgfi.com/all-in-o...

I've shared about it before, not a lot of people know about it. I'm not a lender, but I'm Thann in real estate and I see the value in this product. It's not for everyone, but it allows you access to the equity in the property without having to open a HELOC up.

Thank you. Looks interesting!

0 Votes

Germantown, Maryland

Quote from @Heith Reade:

Hey Amar, personally I would be in favor of using the cash out of property 1 to do an all cash deal on property 2 and then if need be you can use delayed financing on property 2 to payoff/down the HELOC. I say that because in general, when acquiring a property in cash you have more options regarding the property type, the state of repair the property may be in, and generally you'll have more negotiating power being all cash. As far as having to wait to take cash out of property 1, there are some specifics that come in to play as to whether or not you have to wait to get cash out of property 1. I suggest speaking with a lender regarding the specifics.

Thank you.

0 Votes

Germantown, Maryland

Hello,

I am in the process of buying a rental property(1) for $400k with all cash (needed to get the best deal). I'm funding this from HELOC on my primary. I will most likely get $450k in heloc. For the first 6 months, interest rate is 3.75% on heloc. I would like to buy another property (2) right after all this is done ( once I rent this out). What is the best way for me finance the next one ?

1. Get a mortgage on property (1) and use that for 20% down payment for property (2) and put the remaining back to heloc ? Do I have to wait for sometime , either to get mortgage (1) or mortgage (2)? Is Rental lease agreement on property (1) good enough to include rental income while calculating debt-to-income ratio?

2. Get mortgage on property(1) and use that to do cash only deal on property (2) and secure mortgage on that later to pay back heloc ?

I’m confused which way to go and if I will qualify. Appreciate Any suggestions/input .

Thanks!

0 Votes

Germantown, Maryland

Thank you everyone for your valuable insights. Very much helpful.

0 Votes

Wilmington, Delaware

Quote from @Carini Rochester:

The occupant of this new bedroom won't have easy access to a bathtub or shower.

True. It will not have full bath. It’s definitely less than ideal to have a BR here for multiple reasons. But having a BR adds value in terms of renting (LTR) as there are only 2 BRs upstairs. What do you think? Thanks a lot for your inputs.

0 Votes

Wilmington, Delaware

Quote from @Nathan Gesner:

From what I can see, I would put a wall right at the end of the kitchen, alongside the fridge and island. After the island, it would turn up, then your wall/door would be even with the top wall for the bathroom.

Nathan - Thank you so much. Another question- does it make sense and looks okay if I split this family room into 2 parts, one as extra BR and other portion as new dining room? The current space allotted as dining room next Living room, if actually used as DR takes away some space of the living room. May be new BR ending where island ends ? Thanks in advance.

0 Votes

Wilmington, Delaware

All Forum Posts by: Amar Amar

Amar Amar has started 14 posts and replied 47 times.

Post: HELOC - Interest deduction

Post: HELOC - Interest deduction

Post: Investing in Acocreek- Maryland

Post: how do I acquire my next investment property?

Post: how do I acquire my next investment property?

Post: how do I acquire my next investment property?

Post: how do I acquire my next investment property?

Post: Converting Family room to BR

Post: Converting Family room to BR

Post: Converting Family room to BR