All Forum Posts by: Mario Morales

@Anthony Rondinelli following

Here's my situation: I accumulated credit card debt to finance my last property rehab, which is now rented and generating income. However, I'm burdened with credit card debt, a HELOC, and a personal loan. Despite holding a W-2 job and taking on a side gig, I still have $80,000 in consumer debt and a $130,000 HELOC. Last year, I managed to pay off $40,000 in credit card debt, and I aim to do the same this year.

My rental income provides around $4,000 surplus, but with $3,000 going towards debt repayment.  I'm left with only $650 in disposable income. My saving grace, is that mostly everything is pretty new, so hopefully no big problems coming my way...

A part of me is inclined to refinance now, which would increase my rental income to $2,300 from the current $650 (I do have access to 20K for emergencies, a credit card). If I cashout refi one property , that would resolve my debt issues, but I'm torn. I'm considering holding onto my side gig, paying down the credit card balance, and refinancing when rates drop to 5%, even if it takes until December or so. This  would allow me to pay down an additional $40,000 of debt, leaving more funds from the cash out refi for rehabbing a non-income-producing garden unit in another building that I have sitting there. I have another property that has equity but that one should pay for the next property purchase and rehab, so I want to leave that one alone.  My side gig allows me to pay down 2K a month in credit card debt and I have about 14K coming to me, that I'll use towards my debt as well. 

Any advice on navigating this dilemma would be greatly appreciated. Thank you.

See Pic, refinancing at a 7sh %

From what I understand, you can deduct the entire premium as it is an expense to run the rental property. With prices going up so much, if this lowers your cashflow too much, I feel like you may not look profitable in the eyes of a lender. Am I missing something? Thanks

Before, I heard that after a certain amount of units, interest was paid on deposits. At a meetup this month I heard that all deposits, regardless of the number of units in the building, interest will be paid at  0.01% for any leases signed in 2024. I've read a few articles about it but it doesn't mention the number of units, which probably means that as long as there is a deposit, there is interest to be paid as of 2024? 

If a tenant signed a lease in 2022 and the tenant stays on in 2024, I start paying interest on 2024 and thereon?

I got this email from my provider, thoughts on why they called it quits?

We will not renew this policy when it expires. Your insurance will cease on the expiration date
and time shown above.
Non-Renewal reason: We will not be able to offer renewal on this account due to the individual scoring
on this account computed by proprietary algorithm assessing 1st and 3rd party data, vision and AI
assessments has determine that this risk would underperform against industry results and company
underwriting goals.

 What kind of treads do you have? Have they lasted a few years? Thanks again John

@Jonathan Klemm so I've done a lot of my research and with the winter heat humidity and all the exposure to the elements anything with adhesive might peel off maybe the one you recommend will hold up to these issues. don't want that I have a picture will probably cost about 600 bucks for all three flights of stairs. I think they run like $11 each and they get screwed in.

Hey everyone! I have an exposed exterior porch, while we shovel and salt. It scares the C'p out of me, I have been thinking of putting treads to avoid slipping. Anyone have experience with this or suggestions. 

 Yes, it is a legal 2 unit. I have a non conforming garden unit, which I will fix up and rent out at some point. I guess what I didnt make clear, is that in this sheet, I didnt factor in what I pay towards principal in the monthly mortgage payment, just the taxes and insurance. As you mentioned for myself, do I subtract the 12000 i paid towards principal and say I really lost $4000 (principal paydown $12k- Net income of $ 8362 = 3638, which would be a loss). I think I know why its not a loss but still trying to figure it out