All Forum Posts by: Hui Tin

@Eric Kristt anything above 4 unit is considered a commercial.  Please note that there are tons of rules and regulation from all over different county that are more stricter if you have mutifamily house/buildings that are more than 4 unit.  Some examples are boiler inspection, in NYC, it needs to be check every year and if you don't then there is a 1000 dollar fine.  Also if for any "security deposit" you will also need to have it put into a special escrow account, if it collects interest you have to return the interest with the security deposit.

@Brie Schmidt Please note in 2018, I am not 100% sure that HELOC loans are tax deductible anymore if you use it to pay your mortgage.

It is only deductible if you use it for home improvement and only up to 100k.

https://www.irs.gov/newsroom/interest-on-home-equity-loans-often-still-deductible-under-new-law

@Joe Villeneuve

If these seminar are saying that then that's false advertising.  I think Scam hit you with the promise to be rich, if they don't then nobody will be signing up for it.  College does not advertise saying that you will get to work in your field as your degree.

Treat everything as a business, there are winner and loser, always question what they will get out of it and you will be fine.

@Joe Villeneuve

Yes, so the person who is trying to convince me needs to educate me first and prove otherwise first.  We all need to make sure and understand all the risks.  If someone is saying you will make a million dollar a year flipping houses, i can guarantee, not everybody is making a million dollar a year going to the seminar.

For someone who didn't take any real estate course (wait let me take that back, i did started online training to get a real estate salesperson license a few years ago), just follow common sense, if it's too true to be the truth then it's probably a scam.  I always look at these thing as a scam and what they would get out of it.

@Brie Schmidt When i first read this, i was like how would that be possible unless you have a intro rate. I currently have a HELOC that is like 5.25% (it follows the prime rate) and my mortgages are the following: 2.75%, 3.675% and 4.0%) there are no way taking out a HELOC will be better than those rates unless the prime rate is dropping below those.

@Jeremy Henry  I would hold on too, if things becomes desperate, i would try to sell one of the property (one with the worst return) to cover the rest.  If you default, you will never get back into the real estate business.  

@Ali Boone @John Miller,

I guess it depends on your location, in NYC the yearly fee for upkeep of a LLC is only 25 dollar, however I do have my accountant do the LLC taxes, which is also expensable.

It really depends on your tax bracket, for me having a LLC is more worthwhile.

there are pro and cons of owning real estate in a LLC or personal name.

Personal Name - Better Rates, less headache for the mortgage, Don't need to go thru that crazy environment phase 1 review, can only deduct interest mortgage and property tax.

LLC - Asset Protection, ALot of things becomes expensable.

i thought that LLC, you can expense alot of stuff, while if you have it in your name, you can only deduct the property and mortgage interest.