W
WebBoard
Guest
From: Alex Keaton
Hi all,
This is probably a slight twist on a lot of questions you get here.
I have a $120K house which I (stupidly) borrowed $60K on line of credit which is almost gone - doodads! Thanks to Kiyosaki, Burley et al I'm doing a lot better with how I spend my money now
My house was constructed in '76 which cost $25.5K. I want to start real estate investment and am just sort of doing the numbers now.
I have a job which earns me 40K and I have the potential to earn a lot more (only 22) and I have no debt (other than the LOC).
To get myself out of financial mess I am tempted to sell the house, pay back the $60K and pocket $60K change. Then start renting with my employment income and use the $60K to invest in properties.
Is this the best way to go?
I have also considered refinancing the 60K debt on the house to an IO loan, and then renting the property. The house is older though, so I am inclined to think that the costs of repair etc as time goes on will make this not as attractive as extracting the remaining 60K and moving on.
Alternatively (tell me if this sounds dumb), I could sell the house to my parents for 100K (which they borrow on IO), pay off the LOC and pocket the 40K for real estate investing, then have them do a wrap on the property and pocket the difference between their interest payments on 100K and the wrap payments on the 125K house. I've never dealt with wraps (I'm in WA) and I don't want to break Consumer Credit Code so I'd be going to a solicitor to write up a wrap contract.
Or...I could refinance into an IO loan and do the wrap myself, or a lease option.
So many alternatives..yet this is a unique situation since I own the house but I have debt that I would really like to get ride of.
Does anyone have any ideas?
AK
Hi all,
This is probably a slight twist on a lot of questions you get here.
I have a $120K house which I (stupidly) borrowed $60K on line of credit which is almost gone - doodads! Thanks to Kiyosaki, Burley et al I'm doing a lot better with how I spend my money now
My house was constructed in '76 which cost $25.5K. I want to start real estate investment and am just sort of doing the numbers now.
I have a job which earns me 40K and I have the potential to earn a lot more (only 22) and I have no debt (other than the LOC).
To get myself out of financial mess I am tempted to sell the house, pay back the $60K and pocket $60K change. Then start renting with my employment income and use the $60K to invest in properties.
Is this the best way to go?
I have also considered refinancing the 60K debt on the house to an IO loan, and then renting the property. The house is older though, so I am inclined to think that the costs of repair etc as time goes on will make this not as attractive as extracting the remaining 60K and moving on.
Alternatively (tell me if this sounds dumb), I could sell the house to my parents for 100K (which they borrow on IO), pay off the LOC and pocket the 40K for real estate investing, then have them do a wrap on the property and pocket the difference between their interest payments on 100K and the wrap payments on the 125K house. I've never dealt with wraps (I'm in WA) and I don't want to break Consumer Credit Code so I'd be going to a solicitor to write up a wrap contract.
Or...I could refinance into an IO loan and do the wrap myself, or a lease option.
So many alternatives..yet this is a unique situation since I own the house but I have debt that I would really like to get ride of.
Does anyone have any ideas?
AK
Last edited by a moderator: