All Forum Posts by: Mark Fedorov

The question really is, do you want the money now or later? run this calcalator:

http://www.bankrate.com/calculators/mortgages/mort...

However, if you need money for repairs, don't pay the points, if you want cash down the road, pay the points for the lower interest.

As for the 30 days, they will extend it, if you ask them in 21 days...

Until you have 6 to 10 properties, you will find that Excel is the best program to use. 

"REissuing" title insurance will cost more than you think.

IF you keep it in your same name, you are just refinancing, however most banks have higher rates for refinancing than for first mortgages, You should talk to a bank about the two scenarios.

Any income is taxable according to the IRS. So the interest and the fees should be reported, the principal component of the payments are not taxable,

Two points... what does she want to sell it for? (you cant tell what people will accept without knowing what she wants)

how will she feel when you evict her niece?

The low cash flow while you are at the 15 year amortization, vs higher when you refinance.

If you goal is to pay down the debt, and refi in 5 or 10 years, then you should suck it do for the first 5-10 years, as long as you can cover you mortgage, then, when you have a smaller mortgage to refinance/:

at 15 years Amort after 10 years of payment you have less than half the balance

at 25 year Amort, after 10 years of payment you have 75% of balance

If you take a look how each mortgage ends, and what you will do at that point, you will have your answer.

You need to look at a few things... what will be your mortgage balance at the end of each of these?

Is your goal to mortgage these again or to pay it off completely? 

Where do you think mortgage rates will be in 5 or 7 years? (either way you are in the middle of the next presidential term)

Look at what you want to and what you think you will be able to do at the end of each of these terms and you will have your answer.

There is no answer that anyone on the internet can give you which is "the best answer". There are many small details that hopefully a Tax advisor who knows the law will help you out with.

It really seems like you are are new at this, inheritance thing and the real estate thing. At the end of the day make the real estate investment work first, then worry about taxes.

Also, keep in mind that the estate tax exemption is something north of $5MM so unless the EQUITY of the real estate is more than $5MM Federal estate tax should not even come into your thinking.

Read this:  http://www.cbpp.org/research/federal-tax/ten-facts...

If after you read that, you realize you don't have to worry about estate tax, have your Dad start an LLC, have the kids be a minor shareholder, have the LLC get a loan, over the next 3 years make sure the kids learn how to run the building.

It is far more important to make sure your father has a will, there is an executor of the will and that they know where all his accounts are.

Also the reasoning of "Dad has some cash but not really enough to give to us as a worthwhile inheritance" sounds really shallow.

I can not believe that the tenant is unaware of this. If she was at the court, she heard what the judge said. If she tried to contest, she knew what was going to happen.

Say nothing... if you think through this, there is no upside to you. This tenant is going to make that day as difficult as she possibly can for you, so have a good breakfast, and make sure to have a stiff drink after dinner.

As for the details most is covered here, but; confirm the garbage guies will pick it up, remember to bring new locks for ALL the doors (back, side, garage), plan to have your gues there the whole day, if there is not that much stuff to move out, they can start getting it ready for the next tenant... You will have to spend money that day, make sure do invest it on doing everything to protect YOUR interest the most.

Demand is always there, my philosophy is that no one wants to move when there is snow on the ground, so aside from Dec-Feb you are ok. If you have a place vacant for more than 45 days, something is wrong. 

But worrying about the vacant time is really not the biggest concern. You want to worry about location, condition and pricing. Down town is tough, it's large. There is a big difference between 5th and Turner and 14th and chew. The problem you are going to see more often than vacancies, is that you are buying in a crappy area with rents jacked up to be for the nice area.