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5 February 2025 | 5 replies
This works with any type of appreciating property such as real estate, stocks, etcDepending on the appreciation rate, you can potentially see asset values double every 7-14 years.Likely around 7 years if the appreciation rate is 8%Likely around 14 years if the appreciation rate is 4%If you buy something for $100,000 and it appreciates to $200,000, you can potentially take a loan on the $100,000 appreciation which would not be considered a taxable event.However, be mindful that you are paying interest on the loan and you have to payback the loan but yes, it would not add on to your taxable income.
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20 January 2025 | 23 replies
Here's a bit more in detail about how rates are calculated for DSCR loans:1.
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13 February 2025 | 7 replies
Cash is always going to be king, but the delta is definitely more pronounced in higher interest rate environments.
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6 January 2025 | 4 replies
We've been able to rent properties pretty quickly, just as long as the rental rate is appropriate!
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23 January 2025 | 7 replies
Depends on the brokerage you have, but the one we use currently has a rate at 5.83% at 50% LTV.
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16 January 2025 | 6 replies
Have a 27k mortgage balance, sale price est at 415k.
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25 January 2025 | 14 replies
For the $525K property, with the low mortgage rate(you will probably never get a such low rate), it might make sense to hold onto it for now, especially if you can still sell it as a primary residence within the next three years and avoid capital gains taxes.
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30 January 2025 | 6 replies
@Jaren Taylor, not sure if this is why you talk about raising all cash, but given most deals are trading in the 5% cap rate range, and agency debt is 6.5% while balance sheet debt is closer to 7%, I whole heartedly agree that all cash is the ideal capital structure for many properties today, if your goal is to maximize overall returns for your investors.
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1 February 2025 | 12 replies
Capital gains are calculated as:Sale Price - (Original Purchase Price + Capital Improvements + Selling Costs) - depreciation (if applicable) = Capital GainYour mortgage or HELOC balance does not affect this calculation—it only determines how much cash you take home after the sale.In Massachusetts, if the home was your primary residence for at least 2 out of the last 5 years, you may qualify for the Section 121 Exclusion, allowing you to exclude up to $250,000 (single) or $500,000 (married filing jointly) of the gain from federal capital gains tax.
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7 February 2025 | 12 replies
I think there were very very very few people who thought interest rates would go from 3 to 8% in about a year.