All Forum Posts by: Bob C.

I have a million dollar umbrella policy that helps protect me -despite having only one rental property. I also carry 1 million in liability/2 million per incident commercial policy on my rental. Not in LLC.

She lacked capacity. Period. The courts will quickly reverse this transaction.

Don't do business with people that lack capacity... if you are unaware this article explains it: http://www.nolo.com/legal-encyclopedia/lack-capacity-to-contract-32647.html

Hello. Great site. Lots of good opinions. I own one rental and have so for about 2.5 years.

Looks like a trailer or prefab. Not for me.

Comps give a buyer a good thumbnail in my opinion. Obviously older comps in a fast rising market aren't as helpful, but if you index them against an average rise in market prices it can help a bit more.

Basing price on asking prices seems awful risky. I have seen a few houses way overpriced -sellers fishing for a sucker.

Comps seem to cause the market to rise more slowly, at least it seems that way to me. That part can be annoying for both sellers and buyers.

I found this forum and have really been impressed with the varying opinions, and often thoughtful replies. So this is my problem...

I want to buy one or two rentals (depending on price). My situation is this:

- I own a rental home now free and clear that is worth $120k and throws 8K NOI.

- I own my primary residence free and clear and it is worth $200k. Only expenses are normal tax & util.

- due to retiring debts the last couple years I have almost no liquid cash. (5k if I'm lucky)

- I only have $650 in monthly debt obligations (cars)

So I am sitting on $320K in equity, and really want to leverage it. But what is the best way? I prefer fixed rate loans for budgetary reasons. Basically what is the best way to use this equity to finance one or two 100k properties? Are there tax implications (as in not being able to deduct loan interest against the rental)?

Somebody here must have been in this situation, or has known somebody with a similar issue.

I am open to all thoughts. I feel like a dunce because I have so little experience with mortgages / property loans. For that matter I am a greenie as far as rentals. I have awesome tenants so all I do is deposit a check and deliver a prime rib at Christmas. Thank you in advance.