All Forum Posts by: Matt A.

It depends :)

Question for you - why use the LOC to outright purchase the property? Why not just use it for the downpayment and finance the rest?

Personally, I use my LOC to fund down payments and finance the rest of the purchase then refinance down the road (pulling out my down payment and repaying the LOC) once the property has appreciated enough.

Welcome to BP!  I do something similar to the strategy you've outlined and am also in the Twin Cities market.  If you have questions or need help with anything feel free to shoot me a note.  

Have you checked out the book on taxes in the BP store?  

https://www.biggerpockets.com/store/the-book-on-ta...

The authors of the books have also been on the BP podcasts a few times and they have company websites that I've found useful to look at for understanding taxes a bit more.

 LOL.. yea.  I think they are afraid of my property manager :)

I give tenants the option to maintain it themselves, or pay extra each month for me to hire it out. I have never had anyone opt for the hire it out option. For context - I'm renting to students, multi family, and SFH tenants and it's all the same.

Thanks Lance!

I am looking at getting some private funding which will probably end up being a 15 year note. The person providing the money is older (87 years old) and his a net worth of over $5 million.  He wants to set up the note to transfer to his heirs after he passes away to continue to provide a monthly income stream to then.  

Has anyone done this type of thing before and is it pretty straightforward to set up with his estate planning attorney?  Will he and/or his heirs get hit hard by taxes doing something like this?