All Forum Posts by: Lana Lee
Lana Lee has started 15 posts and replied 362 times.
Post: Philadelphia Investment Opportunities
- Philadelphia, pa
- Posts 364
- Votes 109
What are the best zipcodes to buy small multyfalimy in Phila and why? Planning to self manage
Post: New here on this forum
- Philadelphia, pa
- Posts 364
- Votes 109
Are this requirements only for multyfalimy 3+ units? We have a duplex and never heard of any fire alarm system requirements.
Post: Well-educated Estimated ARV from the Pros
- Philadelphia, pa
- Posts 364
- Votes 109
Philadelphia market differs not only by zipcodes but block by block. Need to know if it is it an A B C or D area.
Post: Comparing rates/terms for HELOC on primary before applying
- Philadelphia, pa
- Posts 364
- Votes 109
Interest only HELOC is good if you do flipping or BRRRR when you can quickly sell or refinance to avoid HELOC rates spiking.
We got HELOC with American Heritage credit union. I don't know if they do business out of state as well.
Post: Comparing rates/terms for HELOC on primary before applying
- Philadelphia, pa
- Posts 364
- Votes 109
They should be able to tell you what you qualify for based on information you provide without pulling your credit.
You are talking about low rates, but those are usually promotional deals and not fixed. We recently took out HELOC on our primary residence with 3.99 fixed rate, 3 years draw period and 10 years Amortization. 0 closing costs, not appraisal fee.
Post: Is interest on a HELOC tax deductible?
- Philadelphia, pa
- Posts 364
- Votes 109
Thank you, Natalie !
Post: Is interest on a HELOC tax deductible?
- Philadelphia, pa
- Posts 364
- Votes 109
Originally posted by @Natalie Kolodij:
Originally posted by @Matt Powell:
The latest answer to this question is a year old, and a new law is in effect.
If I'm understanding it correctly, the Tax Cuts and Jobs Act of 2017, enacted 12/22/17, states that interest paid on any home equity loan, home equity line of credit (HELOC), or second mortgage can be deducted only if it is "used to buy, build or substantially improve the taxpayer's home that secures the loan."
https://www.irs.gov/newsroom/interest-on-home-equi...
To me, that makes it clear that interest cannot be deducted when using a HELOC or home equity loan to purchase an investment property, as that is not the home that secures (is the collateral for) the loan.
Perhaps one of the tax experts here could chime in with the latest ground truth. Thanks!
Hey Matt- That's not correct. It is deductible for business/investment purposes.
It's no longer deductible for personal use.
However the laws regarding interest tracing HAVE NOT changed. The IRS lets you trace back interest to it's actual USE.
This means that if the HELOC is taken out but the actual loan proceeds are used to purchase an investment, invest in business, ect...it's still deductible as a business deduction.
If possible you DO NOT want the proceeds from the HELOC to ever touch your personal account, you want it to go right to the LLC bank account for your properties.
Wait a minute. But if I don't have an LLC and want to use HELOC, taken out on my primary residence and use it as down payment on rental property to be perchased with conventional loan on my personal name, can I still deduct the interest on that HELOC?
Boy that was a long sentence
Post: New here on this forum
- Philadelphia, pa
- Posts 364
- Votes 109
Originally posted by @Walter C.:
Thanks for the welcome, Joseph! Yes, the tenants are back in the building, after the cease order was lifted. I was able to address all the listed violations, but oh man, this inspector just seemed to have it out for me. It's a long story, which I may share it someday, if anyone wants to hear.
We sure want to hear your story. It's better to learn from someone's experience then from books.
I got my popcorn. Ready to read:-)
Post: Is it a good time now to buy my first investment property?
- Philadelphia, pa
- Posts 364
- Votes 109
Originally posted by @Assaf Kehati:
Hi @Brendan Markle and thanks for the input. Much appreciated and make sense. Just because it's my first deal I'm obviously more intimidated and also feel like if I do the first deal wrong it will be harder to recover vs. if it was my 3rd or 4th deal and I have something to fall back to.
Anyway, I'm actually interested in the market in Philly and was there a week ago to check out some properties, would love to hear more about what you do there. Thanks
Surely the agents will make you believe it's always a good time to invest, that's how they find thier clients. I don't want to discouraged you, but the market in Philadelphia is so hot, especially for multyfalimy. You might find some multyfalimy in questionable areas. The OK zipcodes are a battle field right now. A lot of people from out of states looking to park their cash. As to me, I can't compete with cash buyers. Properties are flying with the blink of an eye. And FHA buyer are driving prices up to the point that not only there is no cash flow but you are going to be in negative. You can tell economy is going strong. The question is for how long?
Post: ABC Capital not transferring rent (Philadelphia, PA)
- Philadelphia, pa
- Posts 364
- Votes 109
Originally posted by @Catherine Stevenson:
I'm asking for any advice on an issue with ABC Capital in Philadelphia, PA. I am dealing with four properties with them as I have financial power of attorney for my ill father, who owns them (so this is all quite new to me). They haven't paid rent to our account for 5 months this year and keep saying they will address it. They did not provide 1099 tax forms for some of our properties either. Now they simply do not answer emails or calls - I have emailed and called our property manager, the CEO - Jay Walsh, and a new company they seem to be working with called Anchor Management many times but have gotten no resolution.
I would like to recover the rents that we are owed and switch to a different property management company that I have found. Can anyone provide advice on how to do this? I have talked to a real estate lawyer but am not sure whether it makes sense to push up the tension that way. But I don't see another way to resolve it at this point.
Thanks so much for any advice
I've been hearing some negative comments about that company. Maybe you guys that had suffered from them should act together. Here is the recent post
https://www.biggerpockets.com/forums/92/topics/566319-abc-capital-philly-invest-review-terrible-experience