All Forum Posts by: Richard Brightwell

Thank you @Holly Chan!!!

Great nuggets of info! Thank you all for the help! I think I need to provide a few extra details and ask a couple of clarifying questions. 

Rental-A was purchased in March of this year. The $43K down payment and $18K fix-up were paid out of my checking account back in March/April. Based upon @Joe Splitrock's answer, the IRS would have let me borrow those amounts (debt on Rental-B) and it would be tax deductible, all totaling $189K. I wasn't smart enough to do that in March/April. Is it too late to borrow now and characterize it as some kind of delayed financing? 

I did take a 401K loan in February for $42K for an unrelated personal reason, just weeks before putting the $43K down on the mortgage. My employer has contributed $17.5K to my 401k. I think I read somewhere that borrowing against employer contributions (not my elective contributions) could be tax deductible? @Holly Chan am I remembering correctly? If so, could I ethically characterize $17.5K of my loan as being used for the purchase of Rental-A or is it too late? Is it just a matter of what I was thinking at the time, which would seem rather punitive? 

I wish I'd thought of all this back at the time and planned better.  Lesson learned.

I'm not sure what my options are... I just bought a $171K SFH, rental-A, using 75% mortgage and 25% cash down. I spent $18k fixing up rental-A, rented it, and am getting good cash flow. I'd like to pay myself back the 25% down and the $18K. I have a $200K SFH rental which is debt-free, rental-B. I also have a 401k I can borrow up to $50K from. What are my best options? Should I:

1) Cash-out refi rental-B to repay myself? Should I get a little extra (higher LTV) for the next investment? Will the interest be deductible?
    2) Take a $50k loan against my 401k and settle for getting most of my money recouped? Is the interest deductible?
3) Should I get a HELOC on rental-B to repay myself? Then have the HELOC for future investment opportunities? Is this deductible?
    4) Would it be better if I used a corporation in the future? Does that make all the above debt deductible?

@Lannie Dulin Hi! How did things go with Citiside?