All Forum Posts by: Matt Rubel

I manage all of my rentals. I do all the work associated with owning, managing, and maintain the properties. I am constantly moving something with my truck to either mow the lawns or remodel a bathroom. I don't have anymore time to personally maintain any additional properties with my current work life balance. I don't feel comfortable letting a management company manage the 7 units at the three properties. I was hoping to find ways to lower my income by looking into creative but legal solutions. Thank you for all the responses.

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Originally posted by @Scott M.:

Not sure why you would pay more and go the more complicated route. Also, buy used : ) Even a few years old w/low mileage is always better than brand new.

I traded in my old 2013 truck for a used 2020 truck. I never buy new vehicles as you lose 10K the second you drive it out of the dealership.

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Originally posted by @Joe Splitrock:

You answered your own question. The truck interest rate is 3% and home equity is 3.35%.

The interest expense is not deductible against the rental property. Theoretically you could claim the expense of the truck if used in the business. Unfortunately three rental properties is not enough to justify writing off the expense of a truck. I have 13 properties and I am still just claiming mileage. Two things to understand with the IRS:

1. Interest deductibility follows use. If you take a loan against your business and use it for personal expanse, the interest is not deductible.

2. An expense is only deductible if it is a reasonable and necessary business expense.

This answered my question. Loan against your business used for personal expanse means the interest is not deductible. Thank you

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I have three rentals which I've owned for the last 12 years. I was able to buy them cheap and build a lot of equity which I currently gross $4,600/month and my current net is $2,800 after insurance/tax/mortgage/utilities... I now have a three kids under the age of 3 and both my wife and I have demanding full time careers so I do not see myself purchasing anymore rentals in the current market. My question is: Do I purchase a truck with the equity that I currently have in one of my rentals? Would this help save me money on interest? Truck interest rates are 3% and home equity are at 3.25. Thoughts?

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All Forum Posts by: Matt Rubel

Matt Rubel has started 1 posts and replied 4 times.

Post: Home Equity Loan to purchase Truck

Post: Home Equity Loan to purchase Truck

Post: Home Equity Loan to purchase Truck

Post: Home Equity Loan to purchase Truck