All Forum Posts by: Stepheni Larson

Hello BP!

I am interested in buying a 185k 2019 new house in a B+ area, it has 4 beds 2.5 bath, I am considering renting it by the room for 600+ per room. As this area has lots of new grads got decent jobs with 60k+ income, or interns 3-12 month with 3000k+ income, what are some of the logistics that I need to consider when renting it by the room? 

1. Who holds the utilities and internet account?

2. Who takes care of lawn care? 

3. How to not get involved when the tenants have conflicts?

4. any other cautions? Should I get an attorney to draft the lease?

Thank you!!

@Peter T. Just randomly found out about this thread. Not sure how would you feel if you’ve done that in 2013 and kept it.....

My closing fell through today because the irresponsible seller is not able to come up with the closing cost at the VERY LAST MINUTE. I’m just fed up with dealing with this seller and decide to move on. So I just got a cash out refinancing from a local bank I have 115k cash to be wired back to me from the title company, where do I bank these money to get some free money back? Like any local bank offering bonus for opening new checking account such thing? What’s the best strategy?

Hello BP. How do I interpret this - "According to the advisory, the new tax law suspends the deduction for home equity interest from 2018 to 2026 — unless the loan is used to “buy, build or substantially improve” the home that secures the loan."  If I take out the home equity loan out of my primary residence and use that to pay cash for a rental property, can I claim tax deduction on the interest paid for home equity loan?

@Steve Vaughan Thanks for your reply! I do have the 20% down payment in account that's not my emergency fund. The listing price was 139.9k without any appliance, I got it for 137.9k with all appliances stay. Is that what you mean by buying at full value?

Hello BP! I got an offer accepted today for a rental property with a price of 138k. I have my primary residence paid off worth 220k. Should I use a 30 year traditional loan at rate of 4.875% and 4000 closing cost OR home equity loan with rate of 4.75% and 550 closing cost? Am I able to deduct the home equity loan interest for 2018 federal tax return? What is the best financing option here, should I even leverage my fully paid primary residence?

Thank you!!

Hi BP, my primary is fully paid of, I’m looking to buy a rental property that cash flows. Should I use HELOC to pay cash for the rental property or should I use traditional morgage?

@John Warren thank you for your answer! I currently have 2 options to pay the 20% down payment. #1 is to empty all of my savings plus draw some from stocks except for our emergency fund. #2 is try out the HELOC. which option would work the best for a rental Property? Thank you!

Hi, I’m interested to learn of it is possible to use HELOC to pay the 20% down payment (60k) for a rental property that cash flows, with my fully paid off primary residence (220k)? How does it work? Thank you!!!

@Sandra Alexander Hi Sandra! Thank you for your reply. As a PCB local real estate professional I wonder what’s your thoughts on the new construction condo across the street from the beach? I think you might know which one I’m referring to but not sure if I’m allowed to say that property name here in a post.