All Forum Posts by: Mario Tinsley

My bank PNC went through with it. It's all there and ready. I have 56k available in this HELOC to use in total. Outside of that, I do not have immediate access to 30k. I could raise it, or cash out on my IRA and my regular Brokerage account to fund it fully.

Looking for insight with this deal, please! I currently rent where I live. I sublease out the house by room. It's a 4 bedroom 3 bath. But I also rent the finished basement part as a room too. So I live in 1 room and rent out the other 4 rooms. I was offered to buy the house via seller financing. The 3 bedroom 3 bath across the street just sold for $340k. Other similar homes on the street just sold for $310k-$340k. I would be able to buy this house for $310k. 30k down payment, 2.9 interest rate at a 30-year amortization with a 10-year balloon. The house was built in 2002; the roof and furnace were replaced this year, a new built-in microwave and dryer were replaced as well as the AC was serviced last year. I've been living here and renting out all 4 rooms by rooms for 4-5 years now successfully. I own another rental that I have a HELOC on and considering using $30k from the HELOC as the downpayment for this deal. Do you guys think that's a good idea? Should I use some of my HELOC on this? Am I missing something? I have attached a spreadsheet with the exact real numbers of how the deal would look if I move and rent out all 5 rooms. I keep the room listed on FB marketplace & I have people contacting me almost every day to rent a room out. (PMI on this spreadsheet is canceled out because it's seller financing so there's no PMI). I think I can actually get another $100-$150 out of the rooms in total, and I think the utilities are about $75-$100 higher than normal. and I am budgeting for Capex and maintenance though I don't anticipate anything will go wrong since there have been major repairs recently and it's a newer house. I also may be able to mitigate snow removal/lawn and the maid, that is just an idea right now, we do not currently have those services.

Hey Kerry. Thanks for your response! So you would do this deal I'm assuming. I'm just afraid i could be putting my money somewhere else and/or now I'm just hindering myself because I'm getting my credit tied up in a 30k HELOC. Also what do you mean by robust deductible expenses and capital gains exclusions. I get what capital gains are, but what am I excluding regarding that?

Looking for insight with this deal, please! I currently rent where I live. I sublease out the house by room. It's a 4 bedroom 3 bath. But I also rent the finished basement part as a room too. So I live in 1 room and rent out the other 4 rooms. I was offered to buy the house via seller financing. The 3 bedroom 3 bath across the street just sold for $340k. Other similar homes on the street just sold for $310k-$340k. I would be able to buy this house for $310k. 30k down payment, 2.9 interest rate at a 30-year amortization with a 10-year balloon. The house was built in 2002; the roof and furnace were replaced this year, a new built-in microwave and dryer were replaced as well as the AC was serviced last year. I've been living here and renting out all 4 rooms by rooms for 4-5 years now successfully. I own another rental that I have a HELOC on and considering using $30k from the HELOC as the downpayment for this deal. Do you guys think that's a good idea? Should I use some of my HELOC on this? Am I missing something? I have attached a spreadsheet with the exact real numbers of how the deal would look if I move and rent out all 5 rooms. I keep the room listed on FB marketplace & I have people contacting me almost every day to rent a room out. (PMI on this spreadsheet is canceled out because it's seller financing so there's no PMI). I think I can actually get another $100-$150 out of the rooms in total, and I think the utilities are about $75-$100 higher than normal. and I am budgeting for Capex and maintenance though I don't anticipate anything will go wrong since there have been major repairs recently and it's a newer house. I also may be able to mitigate snow removal/lawn and the maid, that is just an idea right now, we do not currently have those services.