Real Investor Match

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?

• Paid off investment home. Can I take a 1st mortgage on that property or must I go with a home equity loan?
• Can you take out a home equity loan on your current home to put a down payment on an investment property?
• Credit is good I have an investment property that is paid in full should I refinance or get home equity loan.?
• can a person take out a 2nd mortgage on their home to purchase an investment property?