Saturday, 24. July 2010
I have an 80/20 on my first home loan, but have been renting it for the past year. I have great tenants and they plan to buy it but want time to save for the down payment. In the mean time I was contingently approved for the second home (5,000) if my because I told the bank I was going to sell it. What if I decided I wanted to just keep it as a investment property?
Saturday, 3. July 2010
I currently own an investment property with a business partner. I am the only one on title since the mortgage is only in my name. I desperately need to get out of this property. My partner has agreed to release me from my obligations. I am giving up all my equity to accomplish this.
We have two options available from what we can tell to get me off the mortgage which is the main objective:
Option 1 – He can actually purchase the property from me to release me from the mortgage. This likely is a bad idea. Essentially, he would buy the house but the proceeds that I receive would end up going back to him at closing. This could easily be looked at as loan fraud and I have not interest in breaking the law.
Option 2 – We add him to title and then he refinances the property removing me from the mortgage. He has been an owner the whole time, it just hasn’t been reflected that way on title. He is more than qualified to be approved for the loan.
Is option 2 legal?
To be more specific, my partner can qualify for the loan per his income, debt ratios, etc. However, he doesn’t want to come out of pocket 20% for a property that he already owns. If he purchases the property the "proceeds" would be the original down payment which I am giving up.
If he were to purchase he would take out a new loan and then have rights to the downpayment. It would go into his account and certainly look like fraud however that is really not the case.
Option two would allow him to go on title and simply refinance thus taking me off the mortgage and not coming out of pocket.
If there are any attorney’s out there I would appreciate your insight.
Saturday, 5. June 2010
I have two mortgages – one for primary residence and one for investment property. I know that interest payment on both loans are tax deductible. But if I get a home equity loan against my primary home to pay off my high-interest car loan, the interest on this home equity loan is also tax deductible?
Friday, 21. May 2010
Are there any legit (well known) Lenders out there who will give a home equity line of credit from an investment property? We have about 65% equity in a home we currently own and rent out in CO.
We have superb credit (above 750). When we built it and bought it with so much cash, we had every intention of it being our final home. Circumstances change and we’re now out of State.
We make excellent profit off it, so selling it, not an option. But how can we free up some cash?
Tuesday, 11. May 2010
I have found a good investment property for rehab or potential lease to buy. It appraises for 2,000 (1482 square feet or per square feet. It has been inspected and is structurally sound. Because it is a foreclosure, it is being sold for ,000. Now….I am a first time homebuyer and will be getting a housing development loan/FHA loan. I will be financing 100% of the purchase price with PMI. Can I receive 80% of its fixed up value or will I have to seek a HELOC using my immediate ,000 in equity after the first purchase. If HELOC, how much can I request? I would like to rehab the property and pay down on a duplex using 1031.
Thanks,
Confused
Tuesday, 4. May 2010
I want to buy an investment property I found for K. If I take out a home equity loan and use 100% of the money borrowed to buy an investment property can I list the interest I pay on a schedule E? If I take out a little bit extra to fix the investment property up can I still deduct the interest on schedule E?
I can get a better rate on a home equity loan and save 00 in fees instead of getting a mortgage on the investment property. Also the home equity interest would be below my allowed minimum itemized deduction if I put it on my 1040 so it wouldn’t save me any money.
So is this allowed?
Thank you!
Yes this is a duplex that will be rented out. I will never live here.
Wednesday, 28. April 2010
My husband and I are thinking of purchasing an investment property by way of using a home equity loan on our first home. Is this a smart thing to do? what are the down sides of it? We don’t have money of our own in the bank to do it, but it seems like a good time to take advantage of the changing real estate market.