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  • January 18, 2018 at 1:13 PM #22500
    TeCKis300
    Participant

    I have a condo that I currently own free and clear.

    Is there any banks offering cash out refinance options that might let me leverage the equity. Possibly in order to pickup another property? Or perhaps a HELOC?

    Guess another question is whether it’s a bad time to buy investment real estate in general given the current prices? Cash flow certainly would be much harder to come by. But projected home prices are still going upward?

    January 19, 2018 at 12:09 PM #809068
    livinincali
    Participant

    Just as an FYI HELOCs interest charges are no longer tax deductible under the new tax laws for most uses of a HELOC. Apparently you can still deduct interest for improvements to the home or condo the HELOC is attached to. You’d probably need a tax lawyer and/or accountant to see if there’s a loophole for deducting it as a business expense for a rental.

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    January 19, 2018 at 1:20 PM #809069
    spdrun
    Participant

    Yep, it would be a business expense IF you use the proceeds to further your rental-property business.

    January 19, 2018 at 1:32 PM #809070
    TeCKis300
    Participant

    So am I understanding correctly that if I used a HELOC from the existing rental property, as down payment to buy another rental property, that I can deduct the interest as it’s a business expense?

    So which banks out there are offering HELOCs on rentals?

    January 19, 2018 at 2:26 PM #809071
    spdrun
    Participant

    Try East-West…
    https://www.eastwestbank.com/Views/Pages/personal/loans/home-equity.cshtml

    January 25, 2018 at 9:09 PM #809120
    Escoguy
    Participant

    I’m getting a new Heloc on an investment property from BoA.

    No specific plan for use, more to have in case of an opportunity.

    -30 yr fully amortizing payment calculated monthly
    -initial rate 3.24% 12 months, then 4.24% variable
    -no fees

    Notable that the bank won’t use the income from the property in question to determine income, but fortunately I don’t need that income to qualify.

    Mostly to use as backup if I need cash for next 10 years before I can tap IRAs without penalty.

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