Posted on: 27th Oct, 2008 10:03 pm
let me start by saying, thanks in advance. i cruised over some of the topics here and say that i'm glad that there's so many people helping each other.
anyway, here's my issue:
in 2005, i purchased a townhome for $360k as my primary residence. well, situations are we all know, change, and i've moved away since (after living there for 1 year) and have rented it out since. i know, i know, let's not talk about why i didn't sell or this and that. anyway, have a tenant currently living in the place.
so, i find out i need $25k worth of repairs down on the exterior of the home. everyone else in the development is also mandated by the hoa to get these repairs done. (ok, also not want to talk about why we need to do this... aggravating enough).
long story short, i need to pay the contractors $25k to have these repairs done. keep in mind, i've converted this property to a rental.
do i take out a second mortgage or should i get a heloc? my credit score is above 750, and i have about $15k in cash. i really don't want to dump cash into the place as i'm thinking i can write off the loan. i'm planning on holding onto the property for another 3-5years, as it would be a tough time to sell.
thanks everyone!
anyway, here's my issue:
in 2005, i purchased a townhome for $360k as my primary residence. well, situations are we all know, change, and i've moved away since (after living there for 1 year) and have rented it out since. i know, i know, let's not talk about why i didn't sell or this and that. anyway, have a tenant currently living in the place.
so, i find out i need $25k worth of repairs down on the exterior of the home. everyone else in the development is also mandated by the hoa to get these repairs done. (ok, also not want to talk about why we need to do this... aggravating enough).
long story short, i need to pay the contractors $25k to have these repairs done. keep in mind, i've converted this property to a rental.
do i take out a second mortgage or should i get a heloc? my credit score is above 750, and i have about $15k in cash. i really don't want to dump cash into the place as i'm thinking i can write off the loan. i'm planning on holding onto the property for another 3-5years, as it would be a tough time to sell.
thanks everyone!
Hi peterkhuang!
I do not think you will get HELOC because presently you are not occupying the house. It will be better if you can take a second mortgage on that property. You have a good credit score which will help you to get another mortgage on that property.
Thanks.
I do not think you will get HELOC because presently you are not occupying the house. It will be better if you can take a second mortgage on that property. You have a good credit score which will help you to get another mortgage on that property.
Thanks.
thanks for the reply,
for a 2nd mortgage, will i be able to write off the taxes or depreciate the amount on my taxes?
how does this affect my monthly payments? i end up making two correct?
for a 2nd mortgage, will i be able to write off the taxes or depreciate the amount on my taxes?
how does this affect my monthly payments? i end up making two correct?
Hi Guest!
I don't think you will be able to write off the taxes or depreciate the amount on your taxes. Once you take the 2nd mortgage, your payments will increase. Yes, you will be making two payments at that time.
Thanks,
Jerry
I don't think you will be able to write off the taxes or depreciate the amount on your taxes. Once you take the 2nd mortgage, your payments will increase. Yes, you will be making two payments at that time.
Thanks,
Jerry