All Forum Posts by: Emil Matov

Thank you, Paul!

Maybe my question isn't clear. Here is an example which reflects the situation but not the numbers. I have a mortgage of $200K on my primary residence. I also have two investment properties with mortgages and around $120K worth of equity if I only take 80% out at a cash out refinance. After all is done each property will carry a mortgage of around $100K. The investment properties will still clear around $600 a month as the investment property mortgages will go from about $50K to $100K each.  The mortgage for my personal residence will drop from $200K to below $100K. I will not itemize anything on my personal tax return and instead will take the standard deduction of $26K for married couple.

Based on the proposed Tax Reform with the substantial increase of the Standard deduction would it make more sense to refinance my investment properties as a cash out and payoff the mortgage on my primary residence. It will allow me to increase the business expenses claimed by the two LLCs and I will just claim the standard deduction. Any advice?