All Forum Posts by: Craig Jeppesen

Based on your age, your risk tolerance and you already having a ton of paid off properties, I would sell and continue to be debt free. That is what I would do if I was in your shoes personally.

Not an expert on the S-Corp, but am guessing you will want to lend your personal funds (heloc) to your s Corp to keep all liability inside the scorp.

I would add that it depends on how leveraged you are and if you count on that cash flow to survive. I would say true investors did just fine, but those doing it for an extra $100-$200 a month to spend  or live off each month will have issues. If you can pay the mortgages with your own w2 cash flow or reserves you will be just fine in a recession.

Heloc is more for short term financing. I would not use it for the refinance part. You can use it for the buy and rehab piece.

 No they just focus on what they think will get the most votes and money and what bits and pieces they need to change to a bill to ensure that they get enough votes for the bill to pass. Politics at its finest.

The simple answer is taxes are different for everyone, they are not fair for everyone, and they are super complex and get worse every year due to politics and politicians agendas, etc etc etc. 

You will not get the answer you are looking for.

 Yes you understand it. The loan will mature in 5 years and you would owe a balloon pmt. pmts would be about $50 less a month with this option. In 5 years your loan balance would be higher by about $3500 or so. Also, I would never compare a $50k house to a $500k property. Way different risk profile, appreciation, and cash flow potential.

 A couple thoughts here.

1. Interest is going to be pretty minimal on $50.k on your two options.

2. Interest rates are super low right now and odds are will be higher in 5 years.

I would take the fixed rate over 20 years. Why take on interest rate risk for $50 a month in cash flow. Now if you were going to pay it off in 5 years go with the low rate.

It is $50 k, why not just pay it off in the next few years? You really want to just pay only almost interest on it for 5 years When you can probably have it paid off in 3 or 4?

Invest it and keep investing more, and reinvest your gains. Become knowledgeable in the area you invest in do you don’t invest blindly so you don’t lose your money. Invest for the long term and don’t stress out about market fluctuations. Don’t get caught up in street talk or office talk or the stock tip of the day. Understand what you are buying and build wealth slowly and surely. Also learn about leverage and how it can increase your returns, but understand the risks associated with it.