The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Tax Q's on financing on an investment property Date:  9/3/2013  12:13 PM
Author:  footsox Number:  119124 of 127613

We are trying to buy a couple of investment properties/rent houses. We can get a mortgage through a bank, but the rates are higher since it is an investment property and not a mortgage for our residence. When I call a few of the mortgage companies to discuss it, most of them recommend a home equity loan against our residence and then use the money to purchase the rental property.

The residence we have is paid for - so no mortgage there.

I am trying to figure out if the tax write offs are different whether we get a home equity loan on our own house or a mortgage on the rental house. Of course we will be writing off all the expenses of the rent house. Can we write off the interest on the mortgage or can we write off the interest on the home equity loan? Is there a difference to the IRS? Thanks for any help. I appreciate it.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us