All Forum Posts by: Yongjian Pan
Yongjian Pan has started 5 posts and replied 10 times.
Post: The SALT Tax Deduction
- Posts 10
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How does the 2017 TCJA affect new homeownership? How does it benefit residential property owners? How does it affect real estate investors? Can real estate investors still deduct the full amount of taxes paid to support rental properties? Thanks.
Post: Refinancing property in real estate
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Originally posted by @Carlin Randolph:
People use the term "cash out" when they buy a property with cash. Because that property has a cash value, the bank will give you 75% of that cash value all at once. If you bought it for $65k and made $10k in repairs, you put $75k into the property .If the property is worth $100k after you have made those repairs, the bank will give you the $75k in the form of a mortgage. A mortgage is where the bank gives you money and if you don't pay the payments, they take the house because it is collateral for the $75k they gave you in this example.
How does refinancing allow you to take the $100K - $75K = $25K out in this example?
Post: Refinancing property in real estate
- Posts 10
- Votes 0
Originally posted by @Carlin Randolph:
@Yongjian Pan if you refinance a property where the value has gone up significantly since the origination of the first mortgage and all you put in was a down payment and payments along the way, you could very well pull all of that money out by refinancing the property at a higher property value. But usually this is done when you have 100% equity and the price plus the repairs are equal or less than 75% of what that property is worth after the repair. Then you can you get a first mortgage for at least that 75% and the bank will give you that money and hold the property as collateral.
What do you mean when you say “But usually this is done when you have 100% equity and the price plus the repairs are equal or less than 75% of what that property is worth after the repair. Then you can you get a first mortgage for at least that 75% and the bank will give you that money and hold the property as collateral?” I’m new.
Post: Refinancing property in real estate
- Posts 10
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How does refinancing a property allow investors to pull the cash out that they had originally put into that property?
Post: Itemized deduction for taxes
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Thank you all!
Post: Itemized deduction for taxes
- Posts 10
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Can you deduct mortgage payment interests for a rental property?
Post: Itemized deduction for taxes
- Posts 10
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What does interest payments and property taxes are tax deductible if you itemize mean?
Post: Tax write-offs for personal and rental properties
- Posts 10
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So even if rental properties owned by landlords are considered business assets? How do you define business assets?
Post: Tax write-offs for personal and rental properties
- Posts 10
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Tax write-offs such as depreciation, mortgage interest, property taxes, and operation expenses...etc apply to both rental properties (property for rent) and personal properties (home for personal living) right?
Post: Mortgage Payments in Buying Homes
- Posts 10
- Votes 0
Hi. I’m new to real estate investing. I’m wondering why does the first few years of mortgage payment are usually paid toward the interest of the loan, instead of to the principal + interest? Also, why is amortization = annual debt services - interest paid for the year?