Question for Ed? - Posted by Bobby

Posted by Bobby on October 31, 2000 at 14:59:56:

Hi ED,

Thanks, we are not to active as we are starting out, but have two houses…so we got the line of credit, I was not sure if I made the right choice but it appears I have, wooish, wiping my brow in relief.



Question for Ed? - Posted by Bobby

Posted by Bobby on October 29, 2000 at 08:00:42:

Hi Ed,

My wife and I own two rental houses, right next door to each other in fact, one is leasted optioned and the other in final stages of rehab.

Both houses are valued at approximately 50K plus or minus 2K. We own both houses free and clear.

Now, it is better to get an equity line of credit to leverage these two houses to purchase more rentals, or it better to refinance them and borrow 80% value on them and purchase more houses.

Whick will give us more bang for the buck, and tax breaks?



Re: Question for Ed? - Posted by Ed Garcia

Posted by Ed Garcia on October 31, 2000 at 10:15:51:


It depends on how active of an investor you are. If you’re buying on occasion, then I would get an equity credit line because then you are only going to pay for the money as you use it. If you are constantly in the hunt and are actively doing deals. Then I would get a full-blown second, because you can get it at a lower rate.

Ed Garcia