All Forum Posts by: Grace Porritt

I switched to a corporate rental in Denver. You cannot generate quite as much, but less hassle. I still advertise on Airbnb, but have a 60+ day minimum. I am allowed 30 in my Hoa...but prefer longer. You can generate approx. 20% over market.

I have the exact same issue in my house.  Most of my renters do not hang out during the day. Electric blankets and mattress pads pull less electricity.  You might try that.

How do they pay out?  Do they wait until the loan is paid off?  On average, what would you say you made in return %?  How much did you diversify?

Hi All,  Thanks for all of your advice. I am considering using the Lending Club.  Has anyone done this with any success?  It looks like it is "up n' up".  This way I do not need to use a lawyer and the diversification is simple.  

I am approaching retirement and I need to be careful about the influence of income on my SS benefits.  I have thought about starting to do some "hard money" loans on a short term basis for the right investors.  Interest income does not reduce my SS benefits.  I am in the process of refinancing a home with lots of equity and may consider cashing out some extra money to use for this purpose.  I would like some feedback on this idea.

Hey Nicole,  What you are describing is a Land Contract Installment Sale.  I have been doing alot of research on it.  You become the bank and the gains are spread out over a number of years.  You hold the title and the buyer gets an equity title.  The depreciation recapture is ugly! I have been told that it is a good idea to keep the insurance in your name.  Just do not default on the your loan!!  Of course there is risk, but aren't we in that business??

I have also heard the same as you about the borrowing on our investments to use get some cash.  I am planning on a refinance of a 1031 property to take out some cash.  I have plenty of equity in all of my properties and I would prefer to use that rather than pay the taxes by selling them at this point.  I can 1031 until death.....but if I just keep holding on and using my equity isn't that a decent strategy.  

I have 3 rental props and I want to start "cashing out" SMART!  The options are making my head spin.  Is there anyone out there that I could pay to help me with projections and goals.  I have HUGE appreciation on all of them.  I will be paying big gains if I sell any of them outright.  I am debating increasing my loans, installment sale, etc....I prefer not to buy another property.  I am 62 and retirement is in the horizon.  

That is correct. I will deduct interest on the loan I keep with the bank. They get the 1098 on the loan I write for them.

Buyer does not have sufficient for 20% DP.  I have also heard of a structured sale working with annuity.  I am not sure how that works.  I have been informed that as long as I hold the title, I may be able to swing this on a refinance and carry a second with the seller.

Depreciation Recapture is basically the same...different terminology. My intent is to spread out the impact of taxes, not avoid them completely. A loan officer today told me if I kept the title in my name, I should be fine. Grant the title to the buyer once both loans are paid.