All Forum Posts by: Rich Waldis

All great points! Thanks for the feedback!

We are leaning towards sale since we will get 100% cash out rather than something less than that.

Also agree that more properties (selling 2 to get 4) is better in the long-run. We couldn't get as much cash from the refi so the extra property may be worth it.

Have to look closely at total cost - closings, commissions, etc.

I have an opportunity to buy more college investment rentals, We currently own 4 and have about a 50% Loan to Equity ratio in 2 that we bought 4 years ago (if you believe Zillow). Prices seem quite high, which means we would get a lot for our current houses, but have to pay a lot for new ones too. The cash from selling 2 houses could get us up to 4 more houses.

Would it be better to cash out refi or sell the 2 with a high LTE? What would be your decision points?

I currently own 2 rentals with about $90k in equity ($320k value, $230k mortgages). I have about $5k in cash and want to buy a 3rd rental property (approx $130k). What's the best way to get cash out of the first 2 so I can purchase another rental? I was hoping for a blanket loan of $360k to cover $450k for all 3 rentals (80% LTV). I would pay off the first two mortgages with the proceeds so that all 3 rentals are tied to the commercial loan. Is that even possible?

Thanks,

Rich

Thanks so much for the advice everyone. I love the ideas. I will get with an attorney and post my findings.

Thanks Eric! I am leaning towards not having him right a check.

Does anyone know of any IRS rules that get dicey on rental property as a business if you have a family member NOT paying rent?

We bought 2 student rental properties in 2016 where my son and daughter attend college. While we were open to the idea of one or both kids living in the rental property, it was not the only reason we bought them. We intend to keep them after the kids are out of college. We have had renters in them since we purchased the homes but my son is going to move into one of the properties at the end of this month. 

The one property will thus have my son plus two other renters that will sign lease agreements and provide deposits. My question is should my son pay rent (whether I fund it or not) by giving me a check for accounting and tax purposes or is that a waste of time if I am paying for it anyways? Is there anything else I need to consider regarding having my family member live in a rental property that I am treating as a business?