All Forum Posts by: Alex Thibau

Thanks for the insightful responses everybody, appreciate it!

Hey Folks,

I'm sure this topic has been covered hundreds of times, but please bear with me. Here is my situation: I've finished a BRRRR investment property which is now worth about $230k. I'm trying to figure out whether it's more beneficial to get a HELOC on this property or get a cash-out refinance mortgage.

I'm attracted to the HELOC because of the flexibility to pay down the balance and save on interest when I have cash to spare, and then draw it back out when I need to use. The only downside I see is not being able to take advantage of the tax deductions from interest as one would with a standard mortgage (for the purposes of this discussion let's assume I am using the money for something other than real estate, therefore no tax deduction possible).

With a HELOC, I calculate that I'll only lose about $750 in tax deductions per year; at that rate, it would take about ten years before the closing costs of a mortgage are eclipsed by the loss in tax deductions of a HELOC. Again, for me, the flexibility of being able to reduce interest payments by aggressively paying down the HELOC when I have cash to spare is attractive.

Anyone have strong feelings one way or the other?

Folks, I just completed the rehab of my first BRRRR and am looking for a recommendation on a good refinance company. Credit is not a problem, I'm just looking for a low-rate on a 30-yr loan. Any help is appreciated!

-Alex

Hello Folks!

First post here. So with a partner I’m buying my first rental investment property . Both my partner’s name and my name will be on the title. For the purposes of liability do both my partner and I need to get insurance or is it acceptable for simply myself to have insurance?

Thanks for the help,

Alex