All Forum Posts by: Marco G.

New guidelines released today, for mortgages closing after Oct 26, 2015.  Traditional guidelines now will apply to 6 instead of a max of 4 mortgaged properties.  No increased credit score or down payment requirements if I understand correctly.  This was only for single family homes held as second home or investment property (I don't believe applies to 2-4 unit properties from my reading).

Just closed on six units, details to come soon!  They are all tenant-occupied with valid leases, some expiring end of next month.

Does anyone have a form "welcome" letter with deferred maintenance/needs questionnaire?  I have the inspection reports obviously, but I want to tackle issues that are of most importance to the current tenants to encourage them to stay.  Rents are at market, so I plan to let them know there will be no increases on 2015 renewals.

Any assistance would be appreciated - first time taking over tenant-occupied properties!

They will likely want to know your intended use of the cash out proceeds as well, so keep that in mind. It's not binding, obviously, but in my experience they always want to know what you want to do with the money. Good luck!

[REMOVED] does portfolio loans, there was a recent thread on them if you do a search. But if you're looking for 30 year repayment period with a fixed rate conventional is the only way to go.

Is there a particular reason you don't want to go the conventional route with three mortgages?

Originally posted by @Kyle Scholnick:

I know the mortgage interest and any expenses associated with the rental property are tax deductible but, is the down payment of a rental property tax deductible?

If I put $40,000 down on a rental property, can I deduct that as a business expense on my income tax?

 Not directly.  The property must be depreciated, just like your computer, car, etc.  If you bought a car with a down payment for business purposes, you depreciate the car.  Here you depreciate the house (not land).

Thanks @David Avetisyan.  I am in escrow on loans 3 through 5, so I didn't experience the distinction from 4 to 5.

Can you pull any equity out? If you can, that's another pathway with far lower transaction costs. So far that has been my vehicle of choice. And good job with that appreciation! Wow!!

Very good to know, thanks a ton @Kimberly T.! Yes, my current umbrella is with auto insurer, although home is elsewhere.

I will definitely be giving state farm a call!

@Kimberly T.

Are your properties held in an LLC or other corporate form? I understand that's a requirement for the commercial policy, but I'm still shopping around. Maybe I will speak with State Farm.

Thanks!

I understand that @Yenipher Barrientos.  The problem I ran into was the limit on number of rental properties my current insurer will give me coverage on (4 rental units).  In the process of finding another without this limit though.