Updated over 5 years ago on . Most recent reply
Rental House with a HELOC
Hello we have a single family rental home that has a HELOC that we are paying interest only on until late 2021. Contemplating converting to traditional mortgage beforehand. Property is owned by my LLC so mortgage rates available as investment are so so... are there suggestions to alternative lenders that are more favorable to investment? Some rough numbers look like this:
Purchase for cash 219,000 In January 2019
Line Balance 125,000
Monthly Tenant rent 1,800
Taxes 1,800 year
Insurance 900 year
We have a conversation mortgage estate of about 1,300 a month which after adding hoa fees and some minor other expenses the monthly net would be between break even and a few hundred bucks... expecting to pay down the line as much as possible but also doing that on primary residence too...
So coming full circle; convert line and keep or look to sell?