All Forum Posts by: Amy Yarnall

Ashish: Thank you very much. Really appreciate your replying. 

And that is a relief

Note: I haven't figured out to search the forums, and I have a feeling this is redundant. If so, please educate me? 

Now for the question: in the new tax law, effective Jan 1, 2018, I understand changes have gone into effect regarding the ability to deduct the interest of HELOCs. Is this accurate? How does it affect rental property? 

We have a HELOC on our first property which we used to make the down payment on our second property (we have two total)

Alex, Dave, and Kevin- thank you. Very much appreciate the help. 

We own a rental worth $220k. (Cash flows $400 per month.)

We have a conventional mortgage with $50k left to pay that will be paid off in 2025. We also took a HELOC loan to buy a second rental. That has automatically converted to a 10 year loan that is now at $40k. We have a strong credit rating. I would like to set up another HELOC, but that would be third position. Do HELOCs take 3rd position? If so, how would I find them?

Or....Would it make more sense to just refi both existing loans and then set up a HELOC in 2nd position?

Daniel, Brian, Dmitriy

Thank you very much 

Amy

We own a rental with $100k in equity. It is worth $220 and provides $400 per month cash flow income after mortgage,  expenses, etc.

We are also preparing to pay for college costs starting in 2020. 

If we were to refinance the rental to pull out the equity, could we:

1. put the equity in a self directed IRA?

2. Are there taxes due if we pull out the equity and put in IRA?

3. Is there a Roth Self directed IRA to avoid future taxes ?

4.  Could we then invest that equity into another house? 

5. Would the property bought by the SDIRA be considered an asset of the SDIRA? Aka not the same asset category as a rental home but an asset in the IRA, treated the same as the stocks in my 401k Roth IRA, &IRA?

Bonus question: 😁

FAFSA (federal student aid application) excludes balances of 401K and IRA, so if the real estate bought and rented out by SDIRA were an asset of the SDIRA, I am hoping the asset would then be excluded from the FAFSA calculation. Anyone happen to know if that is true for FAFSA?