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/biz/ - Business & Finance

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3174726 No.3174726 [Reply] [Original]

If one owns a house worth 100k is it a good idea to get an equity loan -> down payments on rental houses -> pay equity loan and mortgages with rent income and work?

What are some of the risks aside from tenants moving out leaving no income?

>> No.3174769

>>3174726

>What are some of the risks aside from tenants moving out leaving no income?

Tyrone fucks your house up, refuses to pay, then sues you for his niglet son that is retarded for lead paint poisoning when you had no idea lead paint was in the house

>spoiler, there was no lead paint but since your house was made before 1980, the jury found you guilty anyway. And since your white, you owe double plus reparations.

>muh freedom

>> No.3174815

>>3174726
>What are some of the risks aside from tenants moving out leaving no income?

housing market crash leaving you with negative equity

>> No.3174983

>>3174726
It becomes a superfund site and you are a potentially responsible party. It happened to my manager. He is 55 and lives in a tiny apartment now.

>> No.3174995
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3174995

>>3174726

one risk is hail storms come in and fuck up your roof.

>> No.3175465

>>3174726
afaik you can't borrow a down payment.

also down payments on rental property are much larger than those for your home.

and banks aren't going to lend you money for more than one rental until 3 years of positive income are on paper from the first one. Unless you happen to have millions in collateral, which of course you don't or you wouldn't be asking.

so yeah, instead of asking this question on /biz/ every month why not go ask your banker? They'll very quickly set you straight.

>> No.3175525

>>3174726
/biz/ is great at crypto, but none of these faggots ever bought a house.

Don't liquidate equity for a down payment, 1031 that bitch up to a 4 plex immediately. Do some reno, build some equity and 1031 that bitch into a commercial property.

You get 32 doors for a few million and you can pay some mexican chick 10% and give her a unit to manage. Wait 10 years. Congrats you're retired.