All Forum Posts by: Dawn B.

Yes, I spoke w an attorney, thanks

I found out the HELOC is 6.25 and her Primary is 3.25. Unless the HELOC was used for home improvement, it is my understanding she can't write off the interest.

I was just told the HELOC is 6.25%. Her primary mortgage rate is 3.25. Since she can't write anything off per my understanding, it seems that paying it off may make sense unless she has somewhere else to put the money that would earn more than that.

I posted this in the personal finance section but wanted to post here also for advice:  The "Legal" question is at the end but there are some details before that:

A young woman I know received a house from a trust after a family member passed. It has a HELOC. I believe it is for around 45K. She has enough to pay it off but is unsure if that makes sense. I don't think she has a lot of $ left if she does that. She has great credit if that helps. She is wondering the best way to pay it off that would make the most sense. I realize that may be difficult to answer without interest rate info.

She has another small home of her own with a loan. I don't know any of the interest rates or loan balance on her home. I'm assuming her primary loan rate is low because she purchased it several years ago.

I asked what the HELOC rate is and the bank won't tell her until they receive the letter of admin which she is working on. She is a young person who is trying to figure all of this out and has no experience and is overwhelmed. The property is not a rental at this time, but a different family member is living in the home. She does not want the family member to pay rent, but they are taking care of other expenses and maintenance which she feels is a fair exchange. She is not living there herself at this time but in her primary home in another state.

She is wondering if she should put it into a new trust under her name. Anyone who has experience or info that can help her, your input is greatly appreciated.

Thanks!

I'm not sure if this is the best place for this is here, but, a young woman I know received a house from a trust after a family member passed. It has a HELOC. I believe it is for around 45K. She has enough to pay it off but is unsure if that makes sense. I don't think she has a lot of $ left if she does that. She has great credit if that helps. She is wondering the best way to pay it off that would make the most sense. I realize that may be difficult to answer without interest rate info.

She has another small home of her own with a loan. I don't know any of the interest rates or loan balance on her home. I'm assuming her primary loan rate is low because she purchased it several years ago.

I asked what the HELOC rate is and the bank won't tell her until they receive the letter of admin which she is working on. She is a young person who is trying to figure all of this out and has no experience and is overwhelmed. The property is not a rental at this time, but a different family member is living in the home. She does not want the family member to pay rent, but they are taking care of other expenses and maintenance which she feels is a fair exchange. She is not living there herself at this time but in her primary home in another state.

She is wondering if she should put it into a new trust under her name.  Anyone who has experience or info that can help her, your input is greatly appreciated.  

Thanks!

Thanks for sharing! I just reached out to several companies in areas farther out and am hopeful. I appreciate your comment! 

I will do that. Excellent idea! Thanks for the suggestion, I will do that!

Thank you all for your input! You have given me a lot to think about. I have considered some of the things mentioned but some of your insights are really helpful! I found a great agent who is running some reports on my behalf.

The entire lanai/screen porch approx 7x12 attached to the front was completely demolished. The resort upgraded the entire poool area and rec room area.  I agree that the discount is ridiculous but I was really pushed hard by the property management company to do that and I pushed back which didn't earn me any brownie points with them. When I asked them to speak to the tenants about a real estate agent taking a quick look at the interior, the PM company would not return my or the agen'ts calls until I finally reached out to management. Then they said that the renters "don't have to let the RE agent in. I think sufficient with notice, that is not the case although now we do have a showing set up for Monday. I can look that up and confirm it although there is a showing scheduled now.

One consideration if I don't sell is to hire a different PMC but it seems that the one in charge has a monopoly on the property.  Some units are self managed, but most are managed by the same PMC and they are in charge of the front desk at the resort. I can see that causing a problem with direct bookings.

Since it is a ST vacation rental, do population growth, business trends, layoffs, etc. come into play? I assumed not but perhaps I am wrong? 

It's difficult to come up with an ROI based on the decrease in rentals. Is anyone else in the area experiencing a large lag compared to the last few years?

Thanks again to everyone for your input!

Hi all, 

I am looking for advice from those of you with more experience than myself.

Does anyone have recommendations for websites that show predicted real estate prices over the next year or so? I've been getting conflicting information. I'm able to find it for some cities on Realtor.com but not others.

I have a ST Rental on Siesta Key in Florida.  The lanai was blown off during the hurricane. It will likely be 6-9 months before I can get the lanai replaced, or I can pay a company that is price gouging (per my insurance agent) and get it done in about 3 months. It will cost me about 8 K after insurance payout, about 4K more than other companies. I will likely move forward since it will likely rent better/more often with the lanai. Any thoughts on that are welcome!

Some repeat renters are asking for discounted rates of 20-25% due to the lack of a lanai and # of rentals are down from last year but I was told it is that way across the board now that Covid has settled down.

My insurance agent insurance said rates will go up quite a bit this year.  Right now I am paying almost 9k/year for a 1/1 at a community on the beach side. Usually the place makes a decent profit. This year, I MAY lose money due to fewer rentals, insurance increases and the lanai replacement. The expected property values over the next year are going up per some sites and down per others. I would love some recommendations for sites to check to determine if prices are expected to go up or down over the next year or two. 

I am considering selling and purchasing a property in CO or WI to do MTR or LTR but with rates so high, I'm not sure that makes sense. The areas I am looking are highly competitive per Redfin. Perhaps it would make sense to hold it until the lanai is replaced and values go up a bit. It is showing that it is a strong buyers vs sellers market in Siesta Key per Rocket Homes & Realtor.com. That makes me think I should consider holding onto it until it is more of an equal or seller's market.

I've looked at a few sites and one says values will go down 10% and others say they will grow by 8%. Realtor.com says that Siesta Key is in a "buyers market" right now and that prices are trending down -8.6% year-over-year. For that reason, should I hold off selling if I can afford to take a loss for a year?

I am considering selling in order to purchase a different property without sky high insurance costs. I can also manage a medium term or LT rental myself without the fees...assuming I can find one. The areas I am looking are highly competitive. When I look at less competitive areas, it looks like prices are stagnant and properties are much older which has its own set of issues.

What would some of you more seasoned investors consider or recommend and why?

Thanks for your consideration!