Thanks Marc & Rolf. Following Corsa’s post on debt recycling ... http://www.somersoft.com/forums/showthread.php?t=26532 ... do you mean I should pay the non-deductible portion of IP2 debt (IO) with a LOC? Wouldn’t I need to wait until I have more equity to make this work?
If my numbers are...
Love the advice on these forums :) Looking for the most tax-effective way of buying new PPOR and turning current PPOR into IP2.
IP1: value 210K, loan 219K, rent 270/wk; (just settled)
PPOR: value 365K+, loan 155K, will rent for 350+/wk;
New PPOR: 410K max. (incl costs).
Will need...
My first IP contract fell through on some major defects in the building inspection. IP2 has just come back with the inspector identifying a lengthy crack in an exterior wall, strongly advising that a structural engineer take a look. Chances are that it could all be perfectly fine, but I know...