pay repairs from LOC
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Some people see debt reduction as wealth building. They use the equity to borrow to buy another IP rather than having credit build up and limit borrowing.
Some people don't want to blend their LOC with multiple use borrowings
The tax value of interest on borrowing for a deductible is trivial. ie A $1,000 repair would give a extra $45 deduction next year. So on IO that means debt has risen $1045 with no impact on value as such.
Some people don't want to blend their LOC with multiple use borrowings
The tax value of interest on borrowing for a deductible is trivial. ie A $1,000 repair would give a extra $45 deduction next year. So on IO that means debt has risen $1045 with no impact on value as such.
Good point.
For me, my loc is already blended to pay some IP'S deposits.
I don't see the harm to decrease my borrow capacity for several thousand bucks.
Anyways it is better than from my own pocket ,every penny of which should be used to offset ppor.
Considering compound interest, the cost of simply sum up cost from LOC is fine for me.
For me, my loc is already blended to pay some IP'S deposits.
I don't see the harm to decrease my borrow capacity for several thousand bucks.
Anyways it is better than from my own pocket ,every penny of which should be used to offset ppor.
Considering compound interest, the cost of simply sum up cost from LOC is fine for me.
Yes, I don't understand that either. Paying yourself means you can not only borrow but can also get credit card points as well - and a short interest free period on the card too (make sure you don't mix expenses on the cards)
