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Best way to finance rental property? Borrow against other rental prop? New one?

Pls help RE mastermen.
maize toaster
  12/13/17
Use a judgment-proof minority straw buyer, have him check ow...
Pungent abnormal electric furnace
  12/13/17
Note TECHNICALLY this is fraud but it remains endemic given ...
Pungent abnormal electric furnace
  12/13/17
Ty. I am only trying to buy one property though. I just don'...
maize toaster
  12/13/17
Lol just do finance tons of shitty condos
lake galvanic weed whacker
  12/13/17
Nah I just want to buy one condo. 1st investment prop is ful...
maize toaster
  12/13/17
What is in your current RE portfolio?
Blathering Swashbuckling Indian Lodge Coldplay Fan
  12/13/17
V
maize toaster
  12/13/17
My home (50% paid off) Rental condo - paid in full with ten...
maize toaster
  12/13/17
Mortgage rates are pretty low, so I think it makes sense to ...
Blathering Swashbuckling Indian Lodge Coldplay Fan
  12/13/17
[NB: the answer to these questions is ALWAYS "You'd nee...
Pungent abnormal electric furnace
  12/13/17
Cr. I've only previously financed RE I intend to live in, so...
maize toaster
  12/13/17
Thank you. Love it and wouldn't consider buying SF house ...
maize toaster
  12/13/17
Should I wait for the GOP tax plan before making any moves? ...
maize toaster
  12/13/17


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Date: December 13th, 2017 7:52 AM
Author: maize toaster

Pls help RE mastermen.

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34906927)



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Date: December 13th, 2017 7:56 AM
Author: Pungent abnormal electric furnace

Use a judgment-proof minority straw buyer, have him check owner-occupied and FTHB, access fed loan rate (3% down, etc.). Have him take out ~30 properties at the same time, since they only check on a monthly basis and seldom check servicing records. For the ones that fail have him shrug his shoulders and let them repo. For the rest collect $$$, cut dude in at ~5%.

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34906936)



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Date: December 13th, 2017 7:57 AM
Author: Pungent abnormal electric furnace

Note TECHNICALLY this is fraud but it remains endemic given incentives. So I cannot ADVISE you to do this. I'm just pointing out yaknow it's been done and people do it. I advise you not to do it though because it's fraud (even though ppl seldom if ever get caught).

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34906939)



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Date: December 13th, 2017 8:00 AM
Author: maize toaster

Ty. I am only trying to buy one property though. I just don't know which property to borrow against for most favorable terms

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34906958)



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Date: December 13th, 2017 7:57 AM
Author: lake galvanic weed whacker

Lol just do finance tons of shitty condos

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34906938)



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Date: December 13th, 2017 7:59 AM
Author: maize toaster

Nah I just want to buy one condo. 1st investment prop is fully paid off. Ready to buy a second. Can't decide if I should borrow against the paid off one I already own, or do a mortgage on the new one?

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34906950)



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Date: December 13th, 2017 7:59 AM
Author: Blathering Swashbuckling Indian Lodge Coldplay Fan

What is in your current RE portfolio?

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34906952)



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Date: December 13th, 2017 8:02 AM
Author: maize toaster

V

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34906968)



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Date: December 13th, 2017 8:01 AM
Author: maize toaster

My home (50% paid off)

Rental condo - paid in full with tenant in place, worth about $300k

Thinking of acquiring another smaller condo. High COL area.

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34906966)



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Date: December 13th, 2017 8:50 AM
Author: Blathering Swashbuckling Indian Lodge Coldplay Fan

Mortgage rates are pretty low, so I think it makes sense to just finance it with a traditional mortgage. If you take a second mortgage or HELOC on the first property you're sort of (though not literally) securing the new, riskier, investment with a stable investment, which seems like a bad idea.

The other option is to find some wealthy friend/family member and have them invest with you. You can cut them in for a pro rata return on profits minus a small management fee, since you're finding and managing the investment.

You'd need to model the two options on a spreadsheet to see which is better. Obvious upside to the second is lower carrying cost on vacant months.

As an aside, how do you like your first condo investment? I'm considering buying a condo as an investment property but everyone seems to think that it's foolish and that you should stick with single family homes. I think maintenance of the common areas and common elements (like roof) are a huge plus. Any advice?

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34907121)



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Date: December 13th, 2017 8:51 AM
Author: Pungent abnormal electric furnace

[NB: the answer to these questions is ALWAYS "You'd need to model the two options on a spreadsheet to see which is better."]



(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34907136)



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Date: December 13th, 2017 12:05 PM
Author: maize toaster

Cr. I've only previously financed RE I intend to live in, so I don't even know where to begin to get a loan for an investment.

I know I have to run the math, but borrowing for investment sounds like more of a headache than borrowing against something I already own, in theory.

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34908617)



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Date: December 13th, 2017 12:02 PM
Author: maize toaster

Thank you.

Love it and wouldn't consider buying SF house as investment due to higher taxes, headache of exterior maintenance (landscaping, snow), imho a condo unit is easier and more cost effective if you pick a good condo. My place is really nice, a place I'd want to live and thusfar has attracted nice, non-ghetto tenants tenants. Also building is well run with good preventative maintenance and plenty of $$ in reserve fund. This is very important, but downside is initial investment is higher.

I look for units I'd want to live in, with a "cheerful" feel if that makes sense and with some charm or architectural appeal. Even if they need a bit of work "good bones" good natural light, good location. Must be something special I can feel excited about.

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34908596)



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Date: December 13th, 2017 8:24 AM
Author: maize toaster

Should I wait for the GOP tax plan before making any moves? Very high tax area, but I don't know if the "starter condo" range will be impacted

(http://www.autoadmit.com/thread.php?thread_id=3827301&forum_id=2#34907023)