All Forum Posts by: Khari F.

key takeaway: 

Heloc typically have higher interests and a limited withdrawal period but is preferred if you dont have immediate use for funds while cash out refi the interests are usually lower but you start making payments immediately so you need to have a plan to use funds right away. many helocs are also interest only. So once you take the money you need, pay interest only until your refi. This fits much better for BRRRRR. With cash out refi you never have to “pay back” the borrowed money so have more options to leave the money in the deal and not worry about higher interest.

Hello, 

FHA loan on current home? why are you looking to refi now? How did you determine your home is worth more now? is this local small bank? "what did they say "responsible enough" means on paper?

Key takeaway: 

Dont base analysis on any assumption that interest rates, market conditions, bank lending will be favorable enough for you to refi before your ARM kicks in.

Hi what are your $1260 expenses?

Property A (rental)
Loan Balance: $23,281.00

Property B
Purchase Price - $100K
Rehab - $30K
ARV $140K

How much equity do you have in Property A?

What is the down payment on Property B

How many beds and bath is Property B?

Are your rehab costs and ARV based on local comps?

Is $1,200 rent on high end of market rents?

Summary:

When you do seller financing, the property is still being sold so seller is required to report capital gains tax and interest income on an annual basis on the appropriate portions of all principal received. the seller will have the Exact Same amount of taxable capital gain and depreciation recapture as they would selling it to cash buyer, theyre just spreading it over multiple years.

Are there any requirements of the person gifting someone money for down payment on fha besides a gifting letter? i.e docs, records

my thinking is that if you dont have adequate reserves, leave a portion of heloc as reserves for rental's variable expenses

it's best to always 1031 out of bad investment? how do you ensure that's always a viable exit?

@Jon Schwartz makes sense thank you