All Forum Posts by: Rusty Thompson

I second the HELOC plan, Or a cash out Refi. Then spread the money out amongst as many cash flow properties as you can. There is a blog post on here somewhere about how having your house paid off actually increases your chance of getting sued.

Good Advice Will, I will use that tactic in the future

Funny stuff.
I had a deal fall through recently that was the same kind of situation. During my Due diligence I discovered that the septic was installed "without a permit" and that it had never been addressed... according to the county it had fallen through the cracks, but since I brought it up they were putting a action against the property.
Safe to say I pulled my offer unless the seller could provide written documentation from the county showing that either the septic was "good as installed" or that I would be able to install a new septic on the lot. The new septic would have to meet current building codes, & the lot may not have been considered conforming anymore. I never heard back from them.

But for you answer, here it would cost you ~ 7000 to install a new BASIC septic & 5500 to repair it. The problem is if your installing new they may make you bring it up to code... and that can cost $$$ if the lot is no longer considered conforming.

I hope you don't find this rude... but at your age pursuing a "aggressive" investment strategy is a very large risk.
But lets start from scratch...

Do you own a home? How bad is your credit? Do you have a foreclosure? What is your # (I.E. how much passive income is enough for you to be comfortable)What is the medium home price for your area. What are your long term retirement goals... Is there any other information you would like to provide?

Without a complete picture any advice is incomplete at best, and down right harmful at worse.

How much longer is left on the loan?

In my opinion.... You should carry the note yourself. Sell it to him for the full appraised value, but then "gift" him a max of $12000 a year (to avoid gift tax) till it reaches the loan amount. Def. have a lawyer & CPA who are familiar w/ estate taxes write it up for you.
Then to rent it back.
Come to a agreement on how much you will pay, and how much he will pay. Then have him rent it to you @ market & then he can gift the balance to you every year. Its a bit convoluted, but tax planning tends to be.
Understand I am not a lawyer, nor have I ever done this. But it makes sense to me.

What is the value of the home, and what is the loan amount & interest rate if there is one? Do you want to be off the mortgage? Do you want to make a profit? Can your son qualify for conventional financing. There are a lot of variables. We will need more information to give you a informed opinion.

IF you do move forward get a plumber in there first. He will let you know... plumbing wise, if what u want to do is going to work.

I'm moving a master bath right now, and I have $1100 in materials. Thats a good place to start from. The thing is.... Depending on the layout, have you considered moving the master suit upstairs... There are a lot of considerations when dealing with the underground in plumbing. I would hate for you to dig up the pipe just to find out that you don't have enough drop to extend it to were you want it. Upstairs would be easy, & I imaging a lot cheaper.

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There will be a inspection before cover up... that is were they will decide if your going to need a engineer. Like I said. I hope your insurance covers bringing it up to current energy codes, because that is def. Going to be a requirement if the county is involved. If you dont think they will im leaning on the side of doing it without a permit.