回复meierrd的评论:
1) The protection part is correct. I think buying enough insurance is the key. I am not sure about the tax advantage. For your first investment property, do not worry about setting up a company, just buy as personal. Worry about it later when you buy more properties.
4) Normally four month supply is a hot market. People nowadays talk about Texas a lot. I am starting to pay attention to Dallas...
meierrd 发表评论于
Cultuslake,
Thank you so much for the advice!
two more questions if you can help:
1. Do you need to set up a small company to do real estate? I heard some people said it for 2 purposes -- one is for tax advantage, one is for property protection (so we won't lose our own house if tenant sue us.., max lose the company..). Maybe the tax advantage is true, but I'm wondering for the latter, renter insurance should protect us, right? or the renter insurance is still not enough?
2. Right now Texas real estate markget sounds very hot, Real estate agent says the supply is only for 4 month. but if I look at realtor.com, there are so many houses on sale there for any city there. Have you heard this market? and is 4 month inventory meaning supply is really short?
Thanks!
cultuslake 发表评论于
If your house mortgage has a interest rate higher than 6.5%, you should pay down the mortgage with the 30K cash, then borrow all down payment from the line of credit. Otherwise, your way of arranging the down payment is fine.
meierrd 发表评论于
Hi, Cultuslake,
You are doing great and proud for you too!
Can I ask for some advice again?:
We're thinking to buy 2 investment houses (multi-plex), about 300K each (so totally 600K). We totally only have 30K cash, and can borrow about total 290K from bank as home equity loan with about 6.5% rate. Also other info is: For the investment house, if with 20% down pay, rest morgage rate is ~ 7.5%, if with 10% down pay, rest morgage rate is ~ 9.5%. So what we are thinking is:
1. For one house, put in 20% down pay (30K from own, 30K borrowed from home equity loan with 6.5%), then borrow rest 240K with 7.5%.
2. For another house, put in 20% down pay (all 60K borrow from home equity loan with 6.5%), and rest 240K with 7.5%.
Do you think this is the best way to enable the lowest morgate overall? Also will bank allow to do so? Any other better loan options?
Thanks in advance!