All Forum Posts by: Raymond Jolly

Hi everyone,

I sincerely apologize if this question has been posted and addressed.  I am in my first year of owning an investment property and so far everything has been great.  When my wife and I purchased the property last year we took out a home equity loan with our bank at 4.06%  30 year term so that we could purchase the property outright in cash.  Currently we still have a first mortgage on our home with 6 years left at a rate of 2.99%.  Because interest rates have reached a new low, I have been thinking of refinancing the home equity loan to 10 year term. The "problem" that I have is that the institutions that I'm talking with insist on consolidating the two loans.  I can get a 2.25% 10 year loan with minimal closing costs.  If i do this, what is the tax implication?  I can track my business interest expense via the home equity loan since its itemized for this specific purpose.  Will I still be able to do this if I do decide to consolidate the two loans?

Any advice would be appreciated.

Frank, were you ever able to get clarification on this? I am closing on my first deal and incorporating is also on my mind. If you have resolved this could you please share what structure you chose and why? Thanks

Happy New Year Everyone!

This is my first posting on BP so I apologize if my terminology is not precise.  I am seeking advice on a particular matter. My daughter is currently a Freshman at an urban university and I have been interested in buying a property where she could live with fellow students while charging rent.  I came across a potential candidate but the property is owned by a conservancy which desires that the acquiring homeowner move into the property.  Would it be possible to set up a trust to have the asset listed in her name so that she meets this qualification?   I understand why the seller would want this contingency but is there a way to still make this purchase while still meeting this legal requirement?  If this is indeed possible and if you live in NJ, do you have an attorney that you could recommend on this matter?

Any advice on this matter would be appreciated.

Regards.