All Forum Posts by: Michael Dunn

Good Morning,

How would my DTI be effected, assuming I take out a 10 year HELOC ( maybe I should opt for a 20 year ? )

If I take out a 10 Year HELOC , won't my " Minimum " monthly payment be JUST the Interest ( If that's all I want to pay ) for the First 5 years of the Loan ?
And if so , the Minimum Payment a Month would be about ....... $60 a month ?
Or will the Lender break up the 10 year HELOC's FULL 10 years worth of payments as an " Average " , and make this my ACTUAL monthly payment ( even though I have the ability to just pay Interest on the Loan , for X number of years ) ?

Assuming this is accurate ........ If I go to Purchase an Investment Property within say, 9 months from the day that I took out the 10 Year HELOC ........... How will a Lender look at this HELOC via my Monthly debts , when they use it in their analysis of running my DTI ?

I'm going to use this money to Rehab and Repair an Investment property, and Keep it as a Long Term Rental .

Or maybe I should Instead do a Cash-Out Refi. vs doing a HELOC , giving what my intentions for needing the $ are ( to Rehab/Repair an Investment Property I'm about to Buy ) ??

Thank you very much for the help and advice

Thank you Wayne Brooks 

Boynton Clune , 

what is the current Capital Gains Tax on Flips / in General ........ 15% ? 

Thanks 

Boynton Clune

Boynton Clune

I am just curious , what I can expect to pay , as far as Capital Gains Tax is concerned , assuming I Flip a house , and have owned it for less than a year ( from the date of purchase ) ?

Thanks so much 

Off topic a bit, but am curious ........ Since I will have been collecting this $500 a month Rent money, for a full year ( From Jan. 2016 - Jan. 2017 ) ........... Will this $500 offset my PITI note of $480 ? Meaning , will it show up to a Lender, that I NO LONGER have a Mortgage via when the Lender is taking my DTI ratio into consideration ? Thanks so much

Kevin Siedlecki ,

So on the $500 current monthly rent I'm receiving , I'll pay relatively No taxes on , correct ?

My question then is .......... I was hoping to show that $6,000 as Income , ONLY to increase my Overall yearly Income ....... to help in me in aquiring Loans and financing , given that that $6,000 will raise my Annual Income 

But if I understand correctly ....... If I claim all $6,000 and don't take any Deductions on it , I'll have to pay Takes on that full  $6,000  at a  15% Tax rate ?

How then would the say $10,000 I make on Renting my Primary Residence out this year work then ...... as Far as Paying taxes on it , Taking Write Offs, Claiming X amount to show as Income, etc. ?

Thanks so much again for Everyone's input and help 

evin Siedlecki

evin Siedlecki

This year will be my first year in claiming Rental income / taking Deductions via ..... Interest, Insurance, Taxes, Depreciation on one of the two properties that I have as rentals ( the other rental , I will have to wait till 2018 tax season to claim , as I plan to have it ready to rent out by March of this year ...2017  ) 

The Rent I collect on the Unit is $500 a month  ( so $6,000 a year ) 

My note is $480 a month ( PITI )

Since I have only owned this property for just over a year now , come 2018 , will I be able to " claim " this $6,000 a year from the Rent , as actual Income ? 

And if so , what % will I pay Taxes wise on this  $6,000 ?  

Is there a way to avoid having to pay so much money on Rental income ?

This second rental income come March of this year ( 2017 ) will be from my Primary residence , which is the Main house, of which my current $500 a month Rental income property is connected to , via the Roofline / a Breeze-Way that seperates the two houses

If I rent out the main house  ( my Primary ) come March ......... Will I be able to claim the rental Income from March through December of this year as " Income "  ? 

Thanks so much , for any and all help 

I very much appreciate it  

Brandon M. , I did as you recommended , but the last known person to live there has passed away ( I checked the counties obituary )

One year after they passed away, a...... Daughter or Granddaughter I assume, took out what seems to be a HELOC on the property ( I found this on the counties Tax Accessor's website )

So I have her First and Last name, as well as the Bank that I am assuming she did the HELOC through .

I called this Bank, and gave them the information that I had on this property, and asked for her contact information, and they said they couldn't provide me with such information  ( Which I kind of expected )

John Anderson , I assumed they likely wouldn't give me the person's phone number(s) 

Is there a SkipTrace service that you recommended please ?

And if I use one of these SkipTrace services......... am I almost 100% certain, to obtain their Phone Number(s) ?

Thanks so much 

I have never used a SkipTrace service before, but on a current property that I am interested in ........ I am having a tough time in tracking down the Last known Person who did a HELOC on the Property ( Back around 2001 / 2002

I have their first and last name , but when I called the Bank who the HELOC is presumed to have been done under, they said they can NOT give me this persons contact info

I also can't find their contact info on the Counties Website  ( I've tried the Chancery Clerk, Tax Assessor, Land Records, the Deed ) , and still can't find their phone number(s) 

Any recommended SkipTrace service, that others have used and have had success in using , would be greatly appreciated 

Thanks so much 

QUESTION Please, regarding the Bank " Telling Me " who the current owner to a Distressed Property is ?

Through the Counties website / Land Records , I have found the Name of the Last person to do any type of Borrowing against this Property, that has been sitting vacant for years .
I have the Bank , that ( from the online Records ) , shows the first and last name of the person to do any type of borrowing ( a HELOC ) I believe on this Property. The owner passed away back in 2001 , and from my research, I found that someone in the family that following year ( in 2002 ) , took out what seems to be a HELOC against it for roughly $80,000 This past Friday, I called the Bank about this Loan/HELOC and was trying to get the contact information for the person who took out the loan.The Bank said they can not give me any Contact information I have the person's First and Last name .... all I need is a Phone number Should I use a SkipTrace service , and if so , which one or two services are legitimate and what would the cost be roughly ?
And are there any other way(s) I can try and find out the contact information of this person ? I guess asking the few neighbors who live in the Cove where this house is located couldn't hurt
  Thank you for any and all help