All Forum Posts by: Kin Meng Sio

Sounds like you are following Brandon's stacked approach to double your acquisition every year?

Definitely consider getting small multi-families (duplex, triplex, 4plex) to get some economy of scale. I started off investing mostly small multi-families and one single family and had experienced pros and cons for both. 

You will definitely scale faster with multi-families than with single families. 
 

Thanks Betty! I'll reach out to Michael.

Thanks Aaron!

Hi all,

Quick summary - I'm looking for a local lender who can finance small commercial properties (price < $300K) for an out-of-state investor.

I'm an out-of-state investor from Seattle, and have been looking for small multi-families (2 - 4 units) in San Antonio. However I just came across a 6-plex that fits my criteria and am pursuing it at the moment. 

However, since it requires commercial lending and the list price is on the lower end ($265K), my usual lending partners won't do small commercial deals. Therefore I'm looking for local lenders who are interested in financing deals like this. 

If you know someone/banks/credit unions in the area who can finance deals like this, please let me know. Thanks in advance!

Sounds good. I'll consult with my CPA. Thanks for your help!

Thanks @Kevin Romines. One paragraph confuse me in terms of using HELOC from primary residence, which is my case. What's your interpretation on the underlined statement below?

Home Equity Indebtedness

The Tax Cuts and Jobs Act disallows the deduction for interest on home equity loans for the 2018 through 2025 tax years. However, this disallowance only applies to home equity indebtedness, which refers to debt secured by a primary residence that isn’t used to acquire the home.

Thank you! That makes sense so I will probably go with 401k loan then. 

Hi,

I live in Washington state and I have an in-state 4-plex currently under contract with conventional financing. I plan to use one of the following options to partially fund my down payment + closing cost:

1. HELOC from my primary residence

2. 401K loan

I'll be paying back to either loan in couple of months. I'm debating which fund I should use in terms of tax efficiency + opportunity cost. Couple thoughts:

1. If I take money out from 401K, i lose some compound interest until I pay back. 

2. I'm using after-tax $$$ to pay back the 401K + interest. 

3. However, I'm paying back to myself with the interest rate. 

4. HELOC interest is lower and is interest-only payment, so I have more flexibility on my personal cash flow.

5. Not sure if HELOC interest in this case is tax deductible or not. It's a primary residence HELOC but it's paying against a investment property.

Any advice? I'm searching on Google regarding HELOC interest tax deduction but I haven't found anything specific to my case yet.

Hey Kevin, wondering if you've proceeded with Senna Home Buyers and if so what's the experience so far. I've listened to Sam Craven's episode on BP podcast and think his company may be legit to work with. Same with you I couldn't find any posts on BP.

Thanks all for the help! The lender we are working with recommends other lending options (HELOC, 401K, etc.) over HomeStyle based on our situation.