I have 20% saved for a down payment sitting in a bond generating ~5%, but I own 30% of a rental property business that has 2.5M of paid off homes. Would it be better to use a business HELOC to buy my next home and let the business own my home and I rent it from the business with my rent payments going toward the mortgage? This way I can keep my cash and invest it differently? The house I’m considering buying costs $480k
Should I use a business HELOC to buy a primary home?
byu/Charming_Mushroom_70 inrealestateinvesting
Posted by Charming_Mushroom_70
2 Comments
You can’t claim the mortgage interest as a personal deduction. You will not have the right to claim the $250,000/$500,000 capital gains exclusion when the house is sold.
Oh I noticed you only own 30% , so you’d effectively be leveraging almost all your investment. Idk