All Forum Posts by: Jon A.

@Becca F.

@Account Closed If one uses a HELOC on Property A to purchase and renovate Property B, is the HELOC interest tax deductable? And if so, is it deductable on Property A or Property B?

Like others said, if someone is willing to lend you money at 2.75%, you should never rush to pay it off.

If we were in a different place in the market cycle, I might choose to sell. Bc having lived in the property, you'll likely get the proceeds tax free to reinvest somewhere else. But if your local market isn't strong right now, I might hang on w neutral/slightly negative CF for a couple years before selling.

Looks like the fee already existed but that the city now decided to allocate some of the funds to right to counsel...

 I think his point was that syndications, even "growth" syndications, are best for people who are in wealth maintenance mode. If you have $5m-$6m to invest, then perhaps 10%-12% returns work for you. But if you have $300k, you need to double and triple that money over a short period of time.

 I think this is your answer. Do the same thing you were doing but in an area likely to see more rent/price growth. Perhaps step up onto multi family if you can, though i don't see $300k at 65% ltv getting you there.

I would be hesitant to make your first steps into commercial properties now. As you mentioned, interest rates are higher than cap rates in most markets. Eventually, if interest rates don't go down, cap rates will, and you'll lose a bunch of equity.