All Forum Posts by: Sherrie P.

Here is the situation.

Neighbor dies and there is an existing mortgage on his property. He has no assets so the bank begins foreclosure. A year or so before the owner dies, his daughter moved in to take care of him. The daughter has moved in with another neighbor. No one else is interested in the property other than myself. The real estate agent representing the bank said we could sign a Quit Claim Deed with the daughter. We have already made an offer to the bank to purchase the property. The Quit Claim Deed would give us control to protect the integrity of the property, otherwise, the pipes are going to freeze and bust, two dogs living in the house unattended at night, power turned off, copper wiring stripped and so on.

So, here are my questions:

Who is liable for the Property taxes?

Can I rent the property with only a Quit Claim Deed?

Who is liable for the property in the event it burns down, broken into etc?

Would we have any financial responsibility for the existing mortgage?

One more question, why does anyone ever buy a condo on the beach as an investment? Do they just have the cash laying around? I feel like I am hearing beach condo investments are not smart compared to stock market.

Hey Will and Kevin,

What if the property is a foreclosure and can purchased below market price? I can see the math proves it will not very profitable on the front end.. More of a "break even" deal. We use it with our family a couple weeks out of the year.

I guess I am thinking of the appreciation. How do you figure that into the equation? I guess it comes down to what I have faith in.. The market or real estate.. Right?

I checked this morning and our investments resulted in a 9% return this year.. If that continues, I would be a fool to move forward on this. But, like I said -- no one has the crystal ball.. :( Each is a gamble..

Thank you Kevin! Will do :) and again, I appreciate your advice and suggestion. I will post my findings!

HI Marcus,

Spoke to financial advisor and they said we cannot use Roth unless it is on your first home?? This would be not be our primary residence or first home. This is a vacation rental investment ..

so my options are:

1. Pass up the deal all together
2. Fund it by selling stocks, and pay taxes :(
3. Borrow money from local bank (we have a verbal that the bank will do it)
4. Borrow money but go through broker

I wish someone had a reliable crystal ball on the stock market!

Hi Eric,

Sorry that I was not clear.

I wanted to know if anyone has ever borrowed money using their stocks and bonds as collateral?

Is so, what is the downside?

Has anyone ever borrowed money through a bank using your stocks and bonds as collateral?

We could sell the stocks and pay cash for the property, but we would have to pay at least 15% cap. gains.

We would get the benefit of deducting mortgage interest on the rental.

Also, if we did not pull the money by selling our stocks and bonds, they still have a chance to grow.

What is the down side?

Yeah!!, Rich is in the building! (LOL) I am a Newbie and everyone kept saying, "I wish Rich was here" :) So as you can tell, I am glad to hear from you.

I agree it is alot to think about. Darn it, I wish you lived closer to the other "T" state of Tennessee. I would be tracking you down at Pickleball (whatever that is!) and show you the paper on this deal and pick your brain.

I keep thinking Real Estate is slowly coming back and there is only so much beachfront out there.. Now, if mother nature would give us a break on the hurricanes life would be easier...

Lastly, if you are ANY quest in which you are living tax free, please send me an invitation! At least living in Tennessee, I get a little state tax relief :)

Thank you Rich for your advice.

-Sherrie

Ditto Dawn. We exceed our tenants expectations at every turn. We are blessed to have a wonderful family living there right now and anytime they call, 'we hop to it"! :) Customer Service is number 1 in my book, but i am old school.