is it possible to save money doing this? - Posted by Howard

Posted by Howard on January 13, 2004 at 08:50:38:

Well, actually the house I’ve mentioned is a duplex
2/1 each side that apraises at 170k and should apraise at 200k in 3 years worst case scenario, My idea was to pay this one off and buy another one in a remote area that’s is gonna be booming in the next five 2 to 5 years, I dont want to make millions just want to have a monthly cash flow of $1500,00 to $2500,oo that would make me happy, i tought about saving this money the $3200 and them at the end of the year use it as a downpayment for another duplex , where rents range from $500,00 to $800,00 no more than that so I ll have more potential tenants, I believe that duplexes and aps and even houses that rents are over $900,00 or 1k a month is too risk, people realize that with first, last and deposit they could be spendig between $2700 and $3000,00, in these cases renters are better of buying a house considering renters with good credit, even so-so credit.
thanks for your advice.

is it possible to save money doing this? - Posted by Howard

Posted by Howard on January 11, 2004 at 20:57:34:

I OWN A PROPERTY , THE LOAN BALANCE IS 120K, IF I APPLIED
3200 A MONTH TOWARDS THE PRINCIPAL I’LL PAY OFF IN 2 YEARS AND 9 MONTHS, INTEREST RATE IS 5.625.
NOW ,I HAVE THREE CREDIT CARDS AND CAN BORROW UP TO 70K IN OF THEM AND EASILY TRANSFER THIS BALANCE TO MY AMEX AT 2.99% UNTIL BALANCE PAID OFF.
MY IDEA WAS TO BORROW 24K AND TRANSFER THAT TO MY AMEX UNTIL THE BALANCE IS PAID OFF AND DO THIS FOUR MORE TIMES UNTIL THE HOUSE LOAN IS PAID OFF.
IS THERE ANY ADVANTAGE ON THIS?
THNKS ALL

Re: is it possible to save money doing this? - Posted by Brent_IL

Posted by Brent_IL on January 12, 2004 at 23:40:08:

You are replacing tax-deductible dollars with non-deductible dollars for nebulous benefits. I’d weigh this plan carefully.

Re: is it possible to save money doing this? - Posted by E.Eka

Posted by E.Eka on January 12, 2004 at 08:23:56:

I’ll tell you the disadvantages…your credit score goes down and your highly leveraged.

Re: is it possible to save money doing this? - Posted by Ryan

Posted by Ryan on January 11, 2004 at 22:38:53:

Howard,

If you are able and willing to pay $3200 per month towards your mortgage, you might reconsider putting it towards your mortgage and put that money towards something that is going to appreciate in value and make you money, such as investment properties or annuities.

You may feel like you are saving money by doing thism, but you actually may be losing money. Your paying off probably the largest tax break you have and putting it into your house, which will not return any money to you at all. It is like putting money under your mattress. There is a presentation on my company’s website at www.wlgweb.com. It is called Harness the Power of Your Mortgage and is in the upper left hand corner. It should give you a better idea of what I am talking about, and potentially put millions in your pocket.

Ryan Fisher
(877)532-9848

Re: is it possible to save money doing this? - Posted by Carrie

Posted by Carrie on January 11, 2004 at 22:18:37:

Hi howard,
You could I suppose, but why? You could use those credit lines to buy some investment properties that will make you profits that you could use to pay off your mortgage if you wanted.
Just a thought,
Carrie

Re: is it possible to save money doing this? - Posted by Howard

Posted by Howard on January 13, 2004 at 08:37:12:

you are right about that
thnkx