All Forum Posts by: Ben Morrow

If I were to purchase a property in December 2022 and list for rent but am unable to find a tenant until 2023 can I still use bonus depreciation on this property? 

@Rob Beeman thanks for the info on the commercial loan. I believe I will be in the red if I do that for these two properties. However, I certainly will need to do that for the multifamily property that I plan to purchase with the cash from the refi. I also planned to move these two single families into LLC after the refi.

How would you suggest structuring LLCs? One or multiple? I don't want to run into Debt to income issues purchasing the new property that will be 700-800k

These are all very helpful thank you. Great point about looking past the upfront cost an increase to existing loans and thinking about the cost of not buying that multifamily. I am located in PA and both of the homes are Single Family Investment properties located in FL that I have had for 3 and 5 years. It sounds like cash out refi is still the way to go. I estimate that I will spend around 18k and lose almost 10k per year in current cash flow to have about 177k free cash to use as down payment on a third property. 

Some numbers below:

Property 1: 

Purchase Price: 136k 

Estimated Value: 260-288k

Amount Owed: 100k

Total Monthly Payment: $800 

Rent: $1,410

Estimated future Monthly Payment: $1,190

Property 2:

Purchase Price: 118k 

Estimated Value: 250k

Amount Owed: 85k

Total Monthly Payment: $665

Rent: $1,600

Est Future. Monthly Payment: $1092

I have built significant equity in both of my single family investment properties and would like to tap the equity from both to put a down payment on a multifamily. I was planning to take advantage of the low rates and do a cash out refinance on both. However, just in the last week the rates have gone up significantly and are now higher than my existing rate by around .75-1%. Would a HELOC make more sense? Are there any other options that I have?