All Forum Posts by: Matt McElravy

 Great suggestions. Thank you!

Thanks Steve.  I didn't think about taxes and I bet they haven't either.  I'll bring that up and suggest they talk to their accountant about how much they'd pay.  They have lived in the house for 15 years so would the $400K fall under the "No capital gains tax on primary residence if lived in for 2 out of last 5 years"?

A friend of ours is moving to Hawaii and wants to sell us their 56 acre property that includes a business that generates $220K annual gross revenue (about $100K Net).  They are asking for 1 million dollars.  They will Owner Finance $600K and want $400K down.  We'd like to make this work but don't have $400k.  Looking for some creative ways to come up with the down payment.  We can come up with $100k by pulling out of another property we own.  We'd prefer not to take on partners.

Would it be possible to get a loan to buy the business to use as the down payment?  If we did, would that generate a tax consequence for the seller?  

Thanks in advance,

Matt

I have a duplex under contract that will cash flow in paper if rents are at or near market rate. After the seller accepted my offer, I found out rents just a bit higher than half of the market rate. I’d be losing $300/month. With the new laws, I can raise rates about 10% a year. I can’t evict the tenants without cause. The units are in great shape so I can’t use rehab card. I’m ok walking away from the deal but I’m wondering if there is a creative solution to the problem. Can I do cash for keys or something similar?

Thanks Nick! Do most banks want a "seasoning period" before they'll do a HELOC?

Is there a program / bank that will originate a loan as a First Lien HELOC upon purchase of a primary residence or does it have to be a refi? I have a property under contract that will be my primary residence and I'd like to use this method ASAP. I have 20% down payment available. Using cash flow to pay down the principle but still having access to the funds to invest in other properties/investments seems like the holy grail to me.

Hi Wesley, just curious how your Montgomery rental is working out. I’m looking to buy there as well. We’re you able to get a good renter in there quickly?

Thanks @Grady L. I'm going to talk to the city planner tomorrow.

I'm about to put an offer on a property in Salem, Oregon that has a finished basement. It's on a multifamily lot and I'd like to rent the basement out. It has a full kitchen, bath and bedroom but the ceiling is only about 6'4" and the beams bring it down to 6' in spots. Thsquare footage is included in the home' tax assessment. However, everything I read about making a basement livable space says ceilings need to be 6'8 and now lower than 6'4 at the beams. 

Does anyone know the answer to this or direct me to the right person to ask?

Thanks

Matt