All Forum Posts by: Russell Buxton

I'm been offered a 7.9% 250k HELOC on a multi family property I own free and clear. Property is worth 400 K.

Trying to decide whether this is a good deal. Many of you may say initially that this interest rate is too high; however, think about this. We have 30k of free cash every month we can leave sitting in the HELOC thus reducing any interest rate owned. (Interested is calculated at daily rate not monthly like a traditional amortized mortgage)The goal is to use the HELOC to buy an investment property thus savings on cash out refinance fees and then pay down the HELOC over the course of a year. Then I keep going back to this same HELOC to buy future investment properties, thus continually saving and avoiding cash out refi. fees. I could also use the HELOC to pay down a mortgage I have at 6%. Again, on paper it Seems stupid to take out a loan at a higher interest rate to pay off a loan at a lower interest-rate, but based on the way the interest is calculated on the HELOC I believe that in the long run I would pay much lower interest on the investment property. Does anybody know how I could calculate whether I am making a good decision trying to use HELOC as a financing tool for future investment properties? Or at what point the HELOC interest rate is too high. Thoughts anyone?

I have built a rental portfolio of  7 properties and 6 duplexes over the last 5 years. I have separate HOI insurance on each policy with three different insurance companies. Each policy renews at a different time each year. As I live out of the country, it is a pain to keep sending in checks to pay for the policy renewals as my insurance company does not accept online payments. 

Is it possible to bundle all these policies into one  single policy (even though each one is on a different start date?) Any recommendations on where to start looking for insurance? Most of my properties are in NC with one in SC. 

If itis possible to put all these rental properties under one company with one annual payment, what are the dangers/drawbacks/risks in doing so?

Do companies offer a bundling discount? 

Thanks for any tips provided

It is in a same state, NC, but a different town in the state.

I own 8 properties. I intended to buy one more. After the inspection, I decided not to go through with the purchase. As it was a multi unit building, the inspection was $2150.  Can I deduct this loss against the gains in my other properties? I also paid for the title search in anticipation of buying. Can this be deducted too? If yes, would I just put these expenses under one of my other properties as legal fees? Thanks

Any tips on the best ways to pull out equity from rental properties?  I own 5 free and clear all around 200K. I want to leverage up. Been turned down for HELOCs as I own too many properties (their reasoning, despite 800+ credit score) Cash out refis seem to cost a lot on fees, especially on 5 properties. Best rate I'm being quoted at the moment is 5.75 for 30year fixed with Crosscountry Mortgage. Any tips or advice? Thanks

I am sitting on $1million in equity in six rental properties I own free and clear. I have high income and generate $150k in excess earnings per year which I used over the last few years to build my investment portfolio. I wanted to be safe and sleep at night. However, I now realize that these assets are not working for me. Looking now to try and access this equity cheaply and reinvest in new rental properties. I don't want to pay $5k in cash out refi for every new mortgage. Very familiar with the HELOC strategy. Any other tips on best and cheapest way to access all this equity? Thanks