All Forum Posts by: Chris Kinney

@Natalie Kolodij @Michael Plaks

Thank you both - very much appreciate your advice!

One of my rental properties is fully paid off while I have around 200K remaining on the mortgage for my primary residence at an interest rate of 3.875% (and I am only 4 years into the term).   I am thinking of doing a cash out refi on the rental to fully payoff my primary residence if it would be advantageous from a tax perspective (given the new tax law's higher standard deduction for schedule A, I may not qualify for itemized for W2 income).  

If I do a cash out refi, am I able to deduct the the mortgage interest from rental income (I am not sure if this is treated differently than interest from a mortgage used as part of a purchase)? If so, I still am not sure whether it makes sense considering that I would need to do the Refi at an interest rate over 5% vs. the 3.875 I have currently (i.e. does potential tax benefit make up for the increase in rate). Even if it is not a savings but close to a wash, I would still consider the refi because it would give me the ability to substantially increase the limits on my existing HELOC.

Thanks,  I guess I am trying to understand how people typically do brrr.  Is the  purchace done personally and then refinanced with conventional loan or typically under llc and refinanced using commercial, or is it possible to purchase under the llc, do the rehab, and then transfer the title to personal for refinance?

I am considering purchasing a property with brrr as my strategy. should I purchase the property under my LLC or my own name? My thought was to purchase via my LLC but was not sure how this would impact the refinance - would I need to transfer the title to myself personally after the rehab in order to,complete the refi? For those who have done this before how do you handle this?