All Forum Posts by: Rivers Fike

You’ll probably have better luck on the tax forum. 

 Message me directly and I will be happy to share more details. 

I would consider a cash out refi on a property you own free and clear to buy the third property.  

You could consider a subject to take over the mortgage payment and then have the seller finance a second position lien.  

Most I’ve seen recently are at 13% and 3 pts. 

PM me. Happy to connect and learn. 

What would the rate be on the new note? 
I think one major thing to consider is the amortization schedule of your existing loans. They are likely almost paid off and probably paying down a good bit of principal  with the refi you would be at the beginning of the schedule and paying more interest. 

Now the payment on the new note is for the same amount but lower, so would have to have the amoritization length and rate to give a more specific answer. 

Your 1031 QI should be a resource to clarify this for you. The one I’ve worked with on a couple of 1031s has provided me access to an attorney that could give guidance on these kind of details.  

This being said I haven’t had to do any special considerations for paying the mortgage interest or prorated tax on a 1031 exchange. Note: seek professional advice as to not disqualify your transaction. 

Feel free to reach out via PM and I can share who I have used in the past for a QI. 

This has a lot of moving parts to it so a private lender may be a good option for you. I think this one will take a lender with some creativity or multiple lenders/ phasing the project.  

I am curious if the lots are at market value or at a discount? 

Feel free to PM me if you’d like to discuss more details. 

Completely agree on the above that you should be able to not have insurance if the property is owned free and clear. 

However, I would definitely recommend that you seek out at least a liability only policy for you and your mom as co owners of the property.  If something occurs at the property, as an owner you and your husband could be exposed to a lawsuit arising from a liability claim.