All Forum Posts by: Buddy Holmes

Hi @Donald MacMillan,

Your tag says you are an investor.  If you are not a RE Agent or Broker an IRS Auditor will not look kindly on your deducting travel to a "RE Conference".    They see you as an RE Investor or just plain Investor.  Would you deduct going to a Stock Market Class on how to buy stocks?

Cheers

IMHO, I would go for your option #2.  Option #1 sounds good.

Look at your Option #2:

You have already planned to wait 4 months to save 3k on your current REFI

You are increasing your pool of cast at 2k per month, a projected +8k growth in your cash pool.

If you put your cash on that pay down, you say you will save ~1k  (equivalent to 1/2 month) and you take your self out of the market for your second investment for 4 or 5 months.

Just be sure to hold your horses for a new investment that has solid cash flow and not be depending on current appreciation rates.

Your focus on REFI makes me wonder?

Cheers

@Ken Dunn has given you good advise. I might add:  Be sure your degree is something of value in the work place. Some work history is going to be required for any loan.  You might consider a house hike duplex or 4 plex where you live in one unit and get a loan at 3.5% down and use rental income with your job income for the loan.   But no need to rush, read as much about the subject as you can.

Cheers

As a follow up, I can add...

I made the 2020 tax return as discussed above and indicated that the exchange property had not been selected yet.

I had been looking for a DST investment but could not find one with the needed l/V of ~75% which I needed to make the 1033 exchange requirements with the cash available for the Insurance and sale proceeds. Since then I found an LLP group buying an Apartment Complex in Greenville, SC than had the necessary L/V. They were not as familiar with the 1031 process as the DST sponsors, but I finally got the financial details I need to document the exchange. This will be done in the 2021 Tax return.

I had a similar story in 2018. Bought a wholesale home at $109k and ARV was about $150k. I did not try to take cash out until a about a year later. The $109 sale was still an issue. I am working a refi now about 4 years out and the jury is still out on the appraisal but I do not anticipate an issue now since FL appreciation has been through the roof.

Happy to talk to you about the area and contacts for you investing.  Retired investor not in any business to sell you something.

Cheers!

One way to check is to look for a sewer "Clean Out" cap.  This is a flat face Threaded part in a 4" line some where in the basement.  That is most likely the elevation of the sewer line going to the exterior sewer.  If you don't find one and you see a 4" line going int the basement floor than you have a chance of installing a conventional toilet close to this pipe but still a few inches above for proper drain.  If the basement was plumed for a toilet or shower there would be a 4" line vertical in the floor with a cap on it.  In that case you can place a toilet or shower or tub at that spot.  Good luck

Through a FL mortgage broker on a FL rental

I would look for another mortgage broker to be sure, but...

I think the 100 mile rule is for a mortgage on a second home.  If you are planning to move into one of the 4 plex units upon closing and rent or sell your current home I don't think there is any conflict.

I am working with 3.63 30 year fixed on an out of state single family.