All Forum Posts by: Account Closed

Honestly it depends. I think a cashout refinance could be a good idea if you are short on cash and could use it as a downpayment on a new property. Selling is an option as well if you don't think it really works as a rental, although a $900 mortgage payment would surely let you cashflow on a $200k home.

I would live in it and use it as my home, maybe do a cash out refinance to pull some equity out and go from there. I mean, you have to live somewhere.

@David Robertson

Thanks, super informative!

I just emailed them with a few questions and got a response back.  Basically each property undergoes SEC approval by itself, so each one has to be vetted.  Also, as far as selling your bits (shares) in a building, you can sell on the secondary market, or you can sell on their marketplace which they plan to have up and running within the year.  That being said, this seems like more of a buy and hold play.  

 I think the idea behind it is that you would be one of the owners of the property, thus any depreciation on profits, appreciation on the property, principal paydown etc., would be a little different.  I know taxes outside of retirement accounts for REITs can be a bit complicated, but I think the tax treatment is the big difference as far as I can tell.  I may be wrong on that though.

Thanks, @John Corey.  That is some insightful information!  

This type of business seems like a game changer to me. I imagine other platforms will come along and follow in the footsteps as well in offering shares in an LLC that owns property. Anyone have any experience or information working with them? The only downside I can tell (other than the normal downsides to not controlling your own investments) is that selling your bits (shares) seem to be a DIY endevour. I plan on investing long term, so that doesn't seem like a problem, but it would be nice if they setup a marketplace to sell bits and whatnot. I realize they are new, but didn't see anything on BP discussing them.

I am wondering if using Fundrise, or some service like it, would still allow for depreciation and other tax advantages that owning traditional real estate would give me.  Would I get still get depreciation and the like?  Without the tax advantages, I don't see it as being comparable to traditional real estate ownership, however if you do get most or all of the tax advantages, it may seem like a better proposition when taking account the work of being a landlord.  What do you all think?

Let's say that I want to get a mortgage credit certificate (MCC) on a home that I am going to live in.  It has certain income qualifications to get it.  At the time I purchase the home, I am within those parameters and get the MCC.  Afterwards, if I get married to a wealthy lady or if I get a big promotion and start making a lot more money, to the point where I no longer fit into those parameters after the home purchase, am I still able to claim the the MCC or do I lose it?

 Thanks to the both of you for looking into this and providing your explanations.  It has been very helpful.  Thanks!

 Thanks for the great input.  Yeah I think next year I may shop my business around. Thanks!