All Forum Posts by: Khari F.
Khari F. has started 13 posts and replied 149 times.
Post: cash out refi vs heloc on a Brrrr??
- Kissimmee, FL
- Posts 150
- Votes 27
key takeaway:
Heloc typically have higher interests and a limited withdrawal period but is preferred if you dont have immediate use for funds while cash out refi the interests are usually lower but you start making payments immediately so you need to have a plan to use funds right away. many helocs are also interest only. So once you take the money you need, pay interest only until your refi. This fits much better for BRRRRR. With cash out refi you never have to “pay back” the borrowed money so have more options to leave the money in the deal and not worry about higher interest.
Post: Tax and refi questions
- Kissimmee, FL
- Posts 150
- Votes 27
Hello,
FHA loan on current home? why are you looking to refi now? How did you determine your home is worth more now? is this local small bank? "what did they say "responsible enough" means on paper?
Key takeaway:
Dont base analysis on any assumption that interest rates, market conditions, bank lending will be favorable enough for you to refi before your ARM kicks in.
Post: First Investment Property
- Kissimmee, FL
- Posts 150
- Votes 27
Hi what are your $1260 expenses?
Post: PLEASE HELP ME! NEWBIE
- Kissimmee, FL
- Posts 150
- Votes 27
Property A (rental)
Loan Balance: $23,281.00
Property B
Purchase Price - $100K
Rehab - $30K
ARV $140K
How much equity do you have in Property A?
What is the down payment on Property B
How many beds and bath is Property B?
Are your rehab costs and ARV based on local comps?
Is $1,200 rent on high end of market rents?
Post: Seller financing and capital gain taxes
- Kissimmee, FL
- Posts 150
- Votes 27
Summary:
When you do seller financing, the property is still being sold so seller is required to report capital gains tax and interest income on an annual basis on the appropriate portions of all principal received. the seller will have the Exact Same amount of taxable capital gain and depreciation recapture as they would selling it to cash buyer, theyre just spreading it over multiple years.
Are there any requirements of the person gifting someone money for down payment on fha besides a gifting letter? i.e docs, records
Post: Heloc on current home to finance remodel on new house
- Kissimmee, FL
- Posts 150
- Votes 27
my thinking is that if you dont have adequate reserves, leave a portion of heloc as reserves for rental's variable expenses
Post: Cash-Out Refinance of Investment Property - does this make sense?
- Kissimmee, FL
- Posts 150
- Votes 27
Originally posted by @Dave Foster:
@Takahito Torimoto, Cash out refis are great for stellar rentals that can withstand additional debt. But a refi of a mediocre property will not improve it's performance. And while you can buy a new property that will be a good performer you will still have the drag of the bad performer.
And in a refi you have to leave some equity in the bad property.
In a 1031 you get access to all of the equity (after costs of sale). And you can add a good property while at the same time getting rid of a bd property.
Both have their place. The key decision for you is do I really want to hold on to the old property.
it's best to always 1031 out of bad investment? how do you ensure that's always a viable exit?
@Jon Schwartz makes sense thank you