Estate Sale - Home Equity loan on Rental property or Primary

**odqlesz** · 07-02-2010, 07:42 AM

My mother passes and we are looking to buy out the siblings.
We all agreed on a price.

I will be using this house as a rental.

Should I get a home equity loan on the rental or my primary residence
to pay off the siblings.

What is better for a tax write off?

I do have the money in the bank, but don't want to depelete all my savings.
Plus I would like to get some kind of tax write off.

**jholder73** · 07-14-2010, 09:45 AM

You should be directing this question to your CPA to answer tax implications.

Are you saying that you already have the mortgage of your mothers house in your name? That would be the only way for you to get an equity loan on it. If not, your next move is to finance this 2nd house which would resolve your question. You would only need to finance what is currently owed if anything plus what you need to pay your siblings. This should help keep your intrest rate/payments low as you would have a good loan/value.

If you have existing mortgages on both homes in your name as your question seems to indicate there are still many other things to consider. How much your home is worth and how much you owe. How much the 2nd home is worth and how much is owed. Location of the homes. Your income and debt. After your CPA helps you answer your tax questions go to a mortgage broker to fill in the rest of the blanks. If you do not yet have a CPA you should consider one if you are going o be a real estate investor.

**Michael01** · 10-17-2011, 02:39 AM

How much your both home is worth and how much you owe is a matter of consideration before answering your question.Your income and debt etc. need to know. Then I will be able to answer your questions in exact. Thanks for your post.