I am planning on purchasing an investment property with 100% cash. I can purchase the property at 60% of market value. I then plan on pulling a loan out for 60% of the market value. Would it be considered a mortgage or a home equity loan? A mortgage currently is about 300 basis points lower than the home equity loan. I am hoping it would be considered a first mortgage because it would not be a second lien position. Thanks
Posts Tagged ‘equity’
Home equity loan interest is tax deductible?
31
Mar
I have two mortgages – one for primary residence and one for investment property. I know that interest payment on both loans are tax deductible. But if I get a home equity loan against my primary home to pay off my high-interest car loan, the interest on this home equity loan is also tax deductible?
how exactly do I use a home equity line of credit to invest in real estate?
28
Mar
I have heard that taking the equity out of my houses to invest in real estate is a great option. what exactly are the inner working of this? Won’t i be having two mortgages that have to be paid from rental income? any advice and resources or links would be appreciated.
Tax Question: Should I buy rental property with a mortgage or take out a home equity loan?
28
Mar
I am buying a rental property for $50K. I will put 10K down so I need to borrow $40K
I have 2 offers that will determine whether I will apply the mortgage interest on my schedule E for rental property or as an itemized deduction on my 1040.
Home equity loan against my primary house at 6.09% with $300 loan processing fee. 15 year note – 1st years interest payment will be $2452 – I think this interest would be an itemized deduction.
Mortgage for the investment property at 6.25% with 1 3/8 points. Total fee is $2100 including points. 15 year note – Ist years interest payment will be $2492 I think this would be an expense on my schedule E.
I am at a 28% tax bracket and have no other mortgage on my primary house.
To further complicate the picture I have $34000 in student loan debt and could roll this into my home equity loan.
What would be best for my taxes? Take the home equity loan or a mortgage on the new property? Should I roll my student loans into the home equity loan?
Where can I get a home equity line of credit (HELOC) on a condominium investment property?
23
Mar
I own a condominium that I rent out and owe nothing on the mortgage. I’ve applied for several HELOCs online, but all have denied me because it is considered an investment property. Does anyone know of any bank that offers this type of loan?
Can I use profit from an investment sale to payoff a home equity loan to avoid capital gains tax?
21
Mar
I recently sold an investment property with some profit and if I use this money to payoff an home equity line on my primary residence, will I have to pay taxes on it?
can i use my homes equity to purchase investment property?
21
Mar
i have a 1st and 2nd mortgage on my home but i have enough equity to purchase or place a down payment on a second home. i’m looking at refi the 2nd mortgage for a line of credit but i’m being told that is not a good idea because if something goes wrong with the second home i could lose my primary home. am i better off getting a separate loan for the investment property?
Can you take out a home equity loan on your current home to put a down payment on an investment property?
20
Mar
Just wondering if I put a considerable down payment on a home and built more equity over a few years if it would be possible to take a home equity loan out to put a down payment on another home that would be used for investment purposes? A rental property/duple/apartment complex etc….
Of course I realize that the home equity loan would need to be paid back but I was wondering if people out there do this on a regular basis?
If not can anyone give me creative financing ideas when it comest to purchasing multiple homes for investment purposes.
I understand a persons credit score tangible assets can be a determining factor but I have yet to build any considerable assets.
I make close to $250K a year before taxes, would that alone be good enough for banks to finance me?
P.S. – I live in the Dallas TX area and I am looking at properties averaging around $100K as rental properties.
Just wondering if building up equity in homes would allow me to borrow to purchase.
Credit is good I have an investment property that is paid in full should I refinance or get home equity loan.?
19
Mar
I want to consolidate my credit card bills and use some of the cash for more property.
I want to consolidate my bills and use some of the cash to purchase additional properties.
when purchasing an investment property is it better to use an equity loan or a new mortgage loan?
18
Mar
looking for the best interest rate for a second property
HELOC or Home Equity Loan on Investment Property?
15
Mar
I own a house outright in another state (TX) and would like to take out a HELOC against it to help with a down payment for a house to live in here in my home state (CA). It seems to make sense because the interest rate is lower than taking out a 2nd. I would also like to do this a few months before I actually purchase to increase my credit score and help my credit history. Any thoughts?
How do you buy investment property with a home equity loan?
15
Mar
My husband and I are thinking of purchasing an investment property by way of using a home equity loan on our first home. Is this a smart thing to do? what are the down sides of it? We don’t have money of our own in the bank to do it, but it seems like a good time to take advantage of the changing real estate market.
Paid off investment home. Can I take a 1st mortgage on that property or must I go with a home equity loan?
12
Mar
My brother and I need cash for a business venture and would like to take a loan out against an residential investment property that we co-own free and clear. Is our only option a Home Equity Loan? Ideally we would like to take advantage of the lower rates of a standard mortgage.