All Forum Posts by: Percy Matsunaga

@Gregory Williams

Chris is right! I would definitely get the roof fixed cause it will add value to the home. 

Fix as much as you can before the appraisal. Then do a cash out refi for the amount you need to pay yourself back + amount for another unit. 

Good Luck! 

@ Aaron S Fletcher 

I would check out Rentometer for the surrounding areas in your neighborhood. This way you can see what each property will rent out for and you can see the specifics of each houses. 

@Travis Wood

Here what I would do. Since you already have equity of $75K in the property, why not do a cash out refi of XX and invest those $$? 

Since it’s a cash out, you will not have to pay Capital gains tax on it and you keep the property and potentially get another property. 

@Rocco Swinney

I think you are getting it too. But I think you will get it more if you actually apply for the cash out refi.

The bank who will approve you will be able to let you know more about what your monthly mortgage payment will be.

Road blocks that you might incur

1 - cash out refi... the bank will lend you approx 75% of the potential equity of the property.

You need to start a conversation with a lender about that amount

2 - as soon as you cash out a XX amount the following month you will have a monthly mortgage of previous mortgage + cash out refi amount.

You should ask the lender what that amount will be so you can be prepared for the monthly payment.

@Matt Devincenzo

No worries for being blunt. But to your point Which area was I being in correct? 

Can you expand so I can have the correct info? 

@Rocco Swinney

No. Any amount of the cash out refi can be used for anything you want.

Home improvement, but a new car, pay off cc bills. Whatever you want.

The amount being tax deductible is not negotiable.

That amount comes from the bank. They will send you a 1099 every on how much interest you paid.

If you have a tax accountant they should be able to tell you the same thing.

@Rocco Swinney

Look at the question you are asking.

In your 1st property that you do a cash out of $50K.

That $50K is now the principle. You can use that cash part of it or all of it whenever and however you want.

But the bank will charge you interest on that $50K.

Maybe each month you might have to pay $250 for using that $50K

That $250 of interest that you are paying the bank is tax deductible.

Does this make more sense?

@Rocco Swinney

You are confused because you are asking 2 different things. 

You can deduct all the interest paid on the $50K cash out refi. 
the $50K is not the interest. You do not pay this amount to the bank. 

The interest is on the payment you pay the bank monthly. So look at the mortgage statement that you pay on the new cash out refi and you will see how much is going to the principal and how much is going to the interest. 

@Lily Eric Broberg

I like to touch on the forbearance portion of your concern. 
In CA you should be able to ask for forbearance and put the 6. Months of payments at the end of the 30 year mortgage. 
there are several options that the banks want you to choose, but it is in the CARES act that the payment can be on the 31st year of the mortgage. 

Also, I would call you bank and ask about the refinance after the 6 month period and not before. 

I’m dealing with Midland Bank and I have that option of repaying it back at the 31st year. 

@Vishnu Balraj

I live in CA and that home warranty is a bunch of wasted monies. 
Don’t spend time and money on the warranty. You will find that they will do a poor job getting someone out to take a look at your appliances. 
better off just getting a new one.