I have a trust which has two fully paid off / depreciated condos. I am debating buying a third condo cashing out of the first two condos to pay for it.
The depreciation of the third condo will help offset all the passive income within the trust. I am figuring a 30 year traditional "cash out" mortgage & got a quote of 4.25% for an investment mortgage.
If I were to mortgage my personal home I could get 3.5% however thats me vs the trust.
Can I mortgage my home, use the cash in it to lend the trust money (at a 4.25% investor rate), then write off the interest in the trust from myself personally?
Am I looking at this incorrectly? I will seek the advice of a professional but figured I would check here first to see if I am going about this the right way.