All Forum Posts by: Jason C.

Look into “return on equity.”  There is a benefit to the amortized principle pay down that occurs as part of the deal. Then, as the equity grows to a certain point, it becomes a poorer investment to leave that increased equity in the property. That’s why it makes sense to cash out refi every few years on investment properties. 

Hopefully my kids will be in their 50s-60s when I die, so passing a bunch of wealth to them seems pointless. If I have guided them toward smart money moves, they should be all set long before then.

Of course I will leave them my properties but I’m pretty sure they will take the stepped up basis and sell the whole thing right after the funeral. Which I’m ok with.

@Nathan Gesner

I’m sure you’re right. I just hate to buy and then throw away a whole toilet for a tank lid.

Thanks for replying.

I need a replacement tank lid for a glacier bay toilet. Home Depot does not carry them in store, but I found a website that sells lids that are supposed to work. However, they are charging $85 for the lid when a brand new GB toilet is $99.

Does anyone know where I can get a cheaper option?

@Aj Parikh

What kind of interest rates are common for this? I thought no one even offered LOC on rentals.

@Matt Small

Keep in mind quit claim releases your rights to the property, but if the mortgage is in both names, late payments will still affect both parties’ credit score and standing.

Also future properties you buy with a loan are going to be complicated as heck. Lender will want to see divorce decree and they still may want to use the mortgage cost to figure your DTI.

I would look into requiring all properties be refinanced before the divorce is finalized.

@Joe Villeneuve

You seem to be thinking he is talking about paying down the principle out of pocket. But he’s talking about the principle paydown that is REQUIRED by the lender. It comes from the tenant and goes to your minimum payment based on the loan amortization schedule.

@Mike Hern

Yeah I’m fully aware of what can happen to lines of credit when the market changes. I was just countering your silly statement that home equity plus $5.00 would get you a cup of coffee.

@Mike Hern

Appreciation just allowed me to take out a $200k HELOC, so that's way better than a cup of coffee.

I will use that money repeatedly to build more wealth for my family.

SO glad to own my home!

@Jayden Hamilton

I have plenty of tenants who pay in cash. I give them a deposit only debit card linked to one of my Bank of America accounts. They go to the ATM and put the cash in while I relax. Money comes in and I transfer it to another account that I use for my operating expenses.