Buy A House I Own
Hi All,
I have a rehab project I just finished and fell in love with the house and want to get my profit back with a mortgage.
I used all cash to buy and rehab the project. The home will appraise for about 200k and I want to get about 170k for myself.
Anyone have any suggestions about how to get 170k from a home where my business name is on the deed?
In Florida you can deed the property to your self and would be responsible for paying taxes on the balance of the mortgage. Being that you owe nothing on the house now, you can do this for just the recording fees. This should be done so you can get a better rate and claim it as your primary residence.
If you take out 160k it would be better because then you are at 80% LTV. You can later get a HELOC for the rest but you will get a better rate at 80%.
Every state is different, so my answer will be as vague as your question.
In theory the property values should decrease because the uses of the properties would be more restrictive. Again, this is just theory. It depends on the unique details of the neighborhood.
The existing businesses would become non-conforming land uses. In other words, they would be allowed to continue operations but not improve any structural components of their properties. So, the office complex could continue being an office complex, but no structural repairs to the building would be approved by the town/city.
How hard would it be? It depends how politically connected the owner of the business is.
You definitely want to have a title search done before purchasing. Then you may consider purchasing with a warranty deed versus a quit claim deed. A title company would help if you have never done this but they will charge some fees (might be worth the learning experience thought). You can just have him deed the property and you can make the payments but make sure you do your due diligence.