All Forum Posts by: Tara Yoder

@Ashish Acharya its 80K, how would we declare the difference between lifetime and just an annual gift? Is there a form for the IRS?

@Brian G. We do not have a CPA we have just started our REI journey.

So my FIL (father in law) currently holds the mortgage to our home. We would like to do a cash-out refi and we have run into challenges because of the privately held mortgage. We need to know for tax purposes should he write a lien release to be filed with the county that the debt is paid off or would we be better off to have it drawn up as a gift? If it is gifted will that cause more challenges with the cash-out refi?  Thanks all 

My father has been in business for many years, and he has found that you really need to shop around for a CPA. There are a lot of items you can write off as business expenses that many don't think of or maybe it's too much effort?? But if you use your cell phone, vehicle, a room in your home, your internet, any eating out while at your property..... a portion of all these can be written off. I'd suggest doing some research on your own to see what he may have missed. These write-offs can go against the income.   I am not a tax professional, just personal/family experience.

My husband and I are working on our first deal, we have been researching, reading, and listening to podcasts, etc. We are in need of some advice about acquiring our start-up funds. We have been kicking around a few ideas and need feedback on the ideas - 

1. Cashout refi our current home - Would give us about 80,000 to put towards deals. Would this raise our Debt to income ratio and limit us to only commercial property?

2. Partial Cashout refi  - take out 40K in equity and invest the money for a couple years in a turn key or syndication to build up our working capital.

3. Save money each month to build a startup fund - currently, have 5k  adding about $600 per month.

Ideas, suggestions feedback all welcome! Thank you. 

I am new to investing so this may be poor advice/question, would it be better to use funds to pay off a current property?  I would think then you have better cash flow, less debt to income and more assets? Not sure if that is even possible. Just a thought. 

Awesome job!! Congratulations! Curious if you used any of the calculators online or if you just went for it?

What additional questions would you have asked specifically? How was the city difficult to deal with? My husband and I are looking into purchasing a mobile home park. Any advice would be great. 

Thank you, 

Tara

I am a new investor, but the rates, down payment and terms for commercial can be VERY different than a SFR. I was quoted a 20 year, 25% down, 5.5 % for the first 5 years, than years at a higher rate 6-10, with a balloon payment. I'd double check with some lenders to firm up those numbers.

I am new, but I am curious - commercial property around my area sits vacant for a very long time, sometimes. Are you at all concerned it won't rent soon enough and you will have to make the payments for an extended period of time? Just trying to gain knowledge.

Thanks

I am very new to all of this as well. One step my spouse and I have taken is to find some meetups in our area for the express purpose of talking with others who have BTDT. Education and others experience counts for a LOT. I would go to the meet up with your list of questions and see what they have to say.