While these losses won’t immediately offset W2 income without REPS, they can be carried forward to offset future rental income or capital gains when you sell the property, lowering your tax burden long-term.This post does not create a CPA-Client relationship.

A HELOC carries a higher rate over a shorter amortization usually 10 or 15 years and a mortgage carries a lower rate over a 30 year amortization offering a lower payment.You have to run the math in each scenario because the math differs based on a few things like Fico score, CLTV, Loan size, and time frame between purchase and refinance of new property.

Thanks. because existing is super messy and lower returns for general contractors and HIC, I'd recommend looking at new construction too. start to finish 120 days right now on 1-3 family is what our market is going for high volume spec homes that have been built before. 

I read about it on Reddit and have had it for a year - it does everything more expensive softwares do but for a much lower price. 

The interest rate on a HELOC is usually higher than a normal 1st lien mortgage, but I am seeing some cases where HELOCs are in the 6's and 7's (where credit score is high and LTV is 65% or lower), which make them pretty comparable. 

We will be refinancing from our construction loan to permanent soon so would welcome your thoughts on the lower rate today VS the security of long term fixed.I just saw that you have a local RE Meetup this evening.

I had a much bigger building under agreement 15 unit launch financial had my rate in high 6’s with 30 year am which was great the deal ended up falling apart (not their fault seller misrepresentation) but I do like them and you can usually get them to lower their fees. 

The reason for this is that it would have lowered our monthly payments.

I chose a market with lower price points for my first rental investment but I also knew the area really well and had help from a realtor navigating the process.

After 30 months I will have paid the loan down a little, forced appreciation, might have a little market appreciation and hopefully interest rates are lower in 30 months then they are now.