Buying home advise

[Alan]

My fica score is 800, I have no debt other than my existing 3 family home of
82,000.00. Payments are 927 per month. Rents collected are 1400 per month.
My wife and I want to buy a single family home and keep this one. With rent
from the floor we now live on we will collect around 2500 per month.
My wife's fica score is 805, but is not working.
I'm 44 years old.
My annual income from work is 70,000.00
Rents collected will be around 30,000.00

I have 117500.00 coming in from a sale of a business in two weeks.
Next year I have the final 117500.00 coming in from the sale of a business.
I have 20,000.00 in savings.
I have 10,000.00 in cash reserves, (strong box at bank)
Should I re-mortgage the tenement and pull out the max for the purchase of a
single family? Will it be a better write off?
The tenement is now at 8.125% with about 14 years left on the mortgage. It
would value close to 300,000.00
I'd like to put as much as 70-100,000 down from my sale of business proceeds
that's coming in toward the new house.
The balance left over and what's coming in next year I'd like to start
flipping houses. (I've been in construction since 1986)

I also have we'll over 100,000 available on Credit cards that all now have 0
balances and with lower than average rates.
What can I afford for a new house?

Thanks...Alan

[Jeff Strickland]

Dude, you need a tax man to help you devise a good plan. Your credit scores
are fine, and you can pretty much do whatever you want.

I'd like to suggest that your existing multi-family has a rate that is way
too high. You said you have a balance of 82k, but I don't see where you tell
us what it is worth. I'd like to suggest that you look at a 1st HELOC for
this property. Here's what you do, take out a new 1st to 80% of the value,
take a draw of 82k to pay the existing mortgage off. Deposit all of the rent
checks you get into the HELOC account every month, and use the HELOC account
to pay all of the costs associated with this property. What happens here is
that the costs become mortgage interest that you deduct once as a maitenance
cost, and again as mortgage interest. Then, if you have a remaining balance
on the HELOC that covers the down you want to make on another house, then
you simply write the check. Your existing tenents continue to make the
payments onthe HELOC for you, but the HELOC makes your down, which means
your tenants are makingthe down for you.

As a general rule, your deposits to the HELOC will pay the mortage off much
faster, and you save tens of thousands over a conventional mortgage, even in
a rising rate climate. The reason is, these same deposits today go into your
checking account and just sit there for two weeks. If they went into the
HELOC instead, then principle would be drawn down immediately, and your
interest on the average daily balance would be lower by the entier amount of
the deposits instead of only by the payments you make by passing the rents
through your checking account.

This strategy is not for everybody, but your credit scores show that it
could be a great loan for you. The lenders won't even do it for scores below
720, and some require 740. It is a mortgage loan strategy that is relatively
new in America, but has been used in Britian and Australia for something
like 16 years.

"Alan" <alan...@cox.net> wrote in message
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