Best Return
Howdy!
I am looking for advice for the highest ROI over the long term. Here are my statistics:
Rental Property
Purchased: $100k
Balance: $76k
Loan Terms: 30 year, 4.564% ($389/mo)
Renting for $1300/mo with approximately 50% expenses
($115/mo profit)
Primary Residence
Loan Terms: 15 year, 2.969% ($610/mo) with $390/mo for taxes/insurance
Balance: $65k
I want to buy more real estate, but I don't think we would be approved for another loan with our income limitations. I would like to buy another house before the 2 years of rental income is factored in...what are some of my options considering we do not have enough to buy a house cash?
I was thinking about doing a cash-out refinance, 30 year term, for my primary residence to pay down the rental house. What are the tax implications of doing this? Is their a tax break for rental property that I could take advantage of by not paying the rental off?
Please let me know your opinions.