All Forum Posts by: Bryenne Korte

@Ralph R. Thanks so much for this. I'm working with a few people to sort things out. I've decided that I'm going to pull the equity out of the home by selling, and reinvest. It is the the cleanest, most "profitable", option...especially because I won't have to pay capital gains. The info you provided will be super helpful moving forward as we start to invest. Thanks again!

@Joe Splitrock got it. So whether I declare this with the bank or not, it is no longer my primary residence since I don't actually live there? At this point, I'm really just curious what this means for me when I go to refinance. Will it be a problem that I never notified the lender that I am renting the property? Obviously, I will no longer be able to refinance it at as my primary residence, but am I going to have to jump thru extra hoops?

@Brent Coombs I didn't mention it in my original post, but yes selling is an option. I will not need another FHA approved primary, as I live with someone else. My primary goal right now is to pull equity out of the home that I own to finance an investment property (fix and flip or buy and hold) in the very near future. This property was never intended to be a "buy and hold" investment.

@Jim Bowser Thanks, that's super helpful.  if borrowing as a personal residence isn't possible while there are tenants in the home, I'll have to check that off the list. I have no intentions of moving back into the home. Sound like my options at this point would be to borrow against it as an investment, which will have limitations, or sell it to pull everything out now. The cash flow is good, but doesn't help me with my immediate goals. 

@Olivia D. that's a really great point, I also would not have to pay capital gains on this property. Good luck to you :):)

John Teachout good point. Starting to think selling the property free and clear might be the best option :)

@John Teachout the home as appreciated quite a bit since I bought it, about 20%, in addition to about $30-$35K I've paid towards the mortgage... I put down a pretty big payment

Thanks @Bryce Wong! Yes, that would be disastrous. This might be a silly question but...why would I ever sell of transfer to the LLP vs. selling/transferring to another owner? If I refi, will that LLP get in the way?

Hi All -- I lived in my single family home (which I have an FHA loan) for two years before I started renting it out to tenants. I've now owned the home for three years, and have had almost a year of rental income. I live with my boyfriend, so I don't have and won't need a second mortgage. According to the lender, this home is still my "primary residence" (although I did quitclaim the property to an LLP for protection, does that change anything?) I am now trying to get into investing full time, and would like to use the equity in this property to fund my first deal. My questions are...

- Should I change the "status" of this property with the bank from my primary residence to an investment property? Is there a name for that?

- Are there benefits of doing that (as a new investor)? 

Thanks!!

Jay Hinrichs Jayne Overbeck Lynne Jacob Linda Labbe Lance Petway Thank you all!!! This has been so helpful, and I will likely be reaching out to some of you privately for more insight! BP rocks.

Thank you Mark Beckwith and Jessica Vucinaj !!! You will both be a ton of help, as I will have investments on both the East and West side of the state. I appreciate your response and will be in touch :)

Lynne Jacob ***HELOC (that was a smart phone typo!) That's great info and makes sense. I'm going to start looking for a Broker to work with in my area and if you don't mind, I may reach out to you privately for advice or insight. I really appreciate all of your help so far.