All Forum Posts by: Kate Horrell

It's all going to depend on your overall tax situation.  This type of income isn't tax differently; it is just part of your overall income for the year.  I'd look at your top effective tax rate for last year, and save that much (plus 5-10%, just in case you're wrong.)

And ditto on the estimated quarterly taxes.

 Steve, could you please elaborate?  It is my understanding that in many markets, there is such a shortage of housing accepting Section 8 vouchers that lack of tenants is rarely an issue.  I'd love to learn more.

Hi everyone! I'm hoping that some more experienced investors can give me some insight and/or perspective on my biggest problem in growing my REI business.

We currently have two investment properties that are doing quite well, and I'd love to buy more.   However, like most of us, I have a family to consider, and I don't want to take too much risk with our personal financial stability.

Is there a way to separate my business liabilities from my personal financial life?  I'm open to being creative, including taking my name off of our personal properties, in order to keep as much separation as possible.

Alternately, is there a way to get over this mental hurdle?

Anything you can offer would be greatly appreciated!

The loan limits for VA loans vary around the country; $417,000 is the lowest amount and is considered the default amount unless you are in an area that has been designated for a higher amount.

You can find the current VA loan limits here:  http://benefits.va.gov/HOMELOANS/documents/docs/20...

One important note on re-using VA benefits, especially for low down payment loans: the funding fee is not small, and is higher for lower down payments, and is higher for subsequent uses. I have a loan officer who insists that I am dumb not to use the VA loan, but so far there has not been a situation where I haven't been able to do equally well in the conventional financing market. In one particular situation, he advised me to cash out the equity in my primary residence to fund another purchase. It would have been a decent strategy if I did not have other options, but paying 3.3% funding fee on a $400K house makes the other options look awfully attractive.

This is not to say that VA can't be a great option, just be sure to factor in all of the costs. Some will tell you not to worry about the funding fee because it can be rolled into the loan. This is true, and might be the right strategy for your particular situation, but that doesn't mean you should worry about it!

Welcome to the world of REI!

I apologize if this has been addressed elsewhere.

Yesterday, I submitted a loan application for a cash-out refi on one of my properties. We are planning to close in just under a month. Then, last night, I see a property in which I am very interested in buying, and the price on a 3rd property dropped again. I don't even know if I would qualify with conventional financing, but I am pretty sure that I can't have concurrent loan apps going on with two different companies.

Does anyone have any experience with this? What would be good alternatives for me?

While I've been doing this for a while, I've always used safe and traditional loans with my local CU. This cash-out refi is my first loan ever that hasn't been with my CU, and I'm still learning to be comfortable stepping outside the box for financing.

Thanks in advance!

You are looking at a regular, primary residence cash-out refi. The fact that you are renting out rooms will impact your income but does not change the other facts.

Keep in mind that any cash out that brings you below 20% equity will mean that you have to purchase private mortgage insurance, which will add significantly to your overall costs.

Good luck.

You might want to check out the areas on the East Coast, south of Daytona and North of West Palm Beach. (Stuart, Jensen Beach, Port Saint Lucie, Fort Pierce, Vero Beach, Sebastian, Satellite Beach.) I don't know the West Coast well, but there are some great beachs on the ocean side. Various areas have very low housing costs, particularly Port Saint Lucie, which was pummelled with foreclosures. I don't know if you ever intend to live there permanently, but there are some very good schools in some areas, as well.

Without knowing your specific market, it is hard to say what is reasonable to do. I am often guilty of wanting to over-improve. It is easy to do.

Welcome and happy learning!

You WOULD think, if you had the information before AND if the homeowner was rational. The first problem might have an easier solution than the second problem :)