Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago on . Most recent reply presented by

User Stats

9
Posts
1
Votes
Jared Mcgrew
  • Victoria, TX
1
Votes |
9
Posts

Purchasing 2 properties for lump sum. How to divide mortgages.

Jared Mcgrew
  • Victoria, TX
Posted
We are hoping to close on two single family residences that will be purchased from the same owner. We have offered one lump sum to the owner, but need advice on how we should split the loan amounts. Details: -We will be living in one of the homes and the other is currently tenant occupied and will remain a rental property. -the homes are roughly the same square footage. The rental is a 2/2 and the one we will be moving into will be a 2/1. -I anticipate both houses will appraise for roughly the same amount -we are located in Texas and can benefit from a homestead exemption for property taxes on the house we are living in. Questions: -are there tax benefits that would enable us to save (write off/shelter) more $ if the rental property has a higher mortgage / value. -we intend to purchase more properties. Would we be better off setting the rental property up to show a lower purchase price (and therefore significantly higher cash flow) for future loans / showing a good track record? Or would this end up just being a wash against our primary residence? Any thoughts or concerns we haven’t considered?
  • Jared Mcgrew
  • Most Popular Reply

    User Stats

    3,741
    Posts
    4,492
    Votes
    Natalie Kolodij
    • Tax Strategist| National Tax Educator| Accepting New Clients
    4,492
    Votes |
    3,741
    Posts
    Natalie Kolodij
    • Tax Strategist| National Tax Educator| Accepting New Clients
    ModeratorReplied

    This would be a question for your accountant.

    You can just decide the values willy-nilly. You need to allocate based on some kind of justifiable ssystem. IE: The Assessor value for both divided into total purchase price. And continue to use same %.

    business profile image
    Kolodij Tax & Consulting

    Loading replies...