All Forum Posts by: Horacio Gutierrez

Hello,

I'm planing to borrow money from my cousin for a down payment on a rental property, and the rest of the money will be come from a bank.  My concern is that if something happened to my wife and I, my cousin would not get his money back because my collateral from the rental property would go to the bank. I don't want to be put his name on the title of the home but I also would not want him to loose his principal if my wife and I suddenly passed away. Is there anyway where my cousin could automatically stay with the home beside the bank and decide if he wants to keep renting or sell it if we died and the title of the home and loan gets transferred to his name?

Thanks,

Hello,

Can anyone explain to me in what scenario would you use cash on cash return vs cap rate.  Is the cap rate the best metric to use to compare rental buildings or is there a better metric to use?

Thanks,

Horacio Gutierrez

Hello,

Say I buy my first home and after 2 years I decide to move out and rent it and buy myself a second home which will be my primary residence.

My questions are the following regarding the scenario mention above.

1. Can I still keep the same home loan interest rate on my first home even if I rent the home or will the interest rate go up and be consider an investment property home? 

2. On the second home I purchase that will be my primary residence what would be the lowest percentage I can put as down payment and will the home loan interest rate be the same rate as my first home if not how much more will the interest rate be?

Thanks,

Horacio