All Forum Posts by: Matt Wells

@Bill B. There are NO mortgages, new or old on the rental properties. They will be paid off.  I'm asking if it's wise to use the cash flow from three paid-off rental properties to pay the mortgage on a 4th property (a primary residence) on a 30-year mortgage. This is the only question and the only factors. 

@Bill B. Sorry, I'm not being clear. I'll try again. So here would be the situation. I would not get loans on my rentals. I would leave

them paid off and use the cash flow to pay the 30-year mortgage (probably 6% to 7%) on a primary residence. Seems like a good move, but just making sure I am not missing something, tax-wise or whatever. 

@Bill B. Ok, does it make sense for me to use three paid-off rental properties to pay for the mortgage on a primary? I can deduct the mortgage payment on the primary to offset the rental income from my paid-off rental properties. I'm just looking for an answer to this situation. 

@Randy Rodenhouse The 3 rental properties will be paid off. No mortgages. Since I will be taxed more for my rental income (because there are no mortgages on the rentals), I am thinking I can reap the tax benefits on a primary with a mortgage.

3 rentals paid off, generating $3,000 a month (no mortgages).

1 primary, 20% down, with a 30-year mortgage.

I deduct the mortgage interest from the primary to offset the taxes on the paid-off rental income. Does that make more sense?

Has anyone gotten a HELOC on their TIC unit? Do tenants in common units make it more difficult? Are their higher rates and different rules than with a single-family residence?

From a tax savings perspective, is this a good idea? If I had three paid-off owned free and clear SFRs generating $3,000 a month in rental income, would it be wise to put down 20% on a primary residence and use my rental income to pay the mortgage? I think the mortgage interest payment I'm writing off on my taxes will offset the rental income I'm taxed heavily for on my rentals. Does it work like that? Can someone give me some insight?

@Andrew Postell Yes, it makes perfect sense. Thanks! I did review the guidelines and I get it now. They sure do make it difficult to understand! 

@Andrew Postell This post really helped me out a lot. Can you point me to where it says on the Fannie Mae and Freddie Mac websites that delayed financing can be used for investment properties? 

@Andrew Postell One more hypothetical question. Say I have 10 conventional investment loans and separately in an LLC I have 10 commercial investment loans. Can I still get multiple primary residence conventional loans?

@Andrew Postell I read your "Cash Purchases" post. It makes perfect sense. I'll be asking my lender about this ASAP!