Hi Accountant Forums!
I'm thinking about leveraging the equity on my primary residence to make all cash offers on investment properties. The reason I'm considering this is bc the interest rate on financing an investment property is 4.125%, but a cash out on my primary would only be 3.125%. My question is come tax-time, could I write off the mortgage costs of the cash out (or second loan) on my primary the same way I'd be able to do as if I carried a mortgage on the investment property? I live in CA and looking to buy in Indiana.
Thank you!
Anna
I'm thinking about leveraging the equity on my primary residence to make all cash offers on investment properties. The reason I'm considering this is bc the interest rate on financing an investment property is 4.125%, but a cash out on my primary would only be 3.125%. My question is come tax-time, could I write off the mortgage costs of the cash out (or second loan) on my primary the same way I'd be able to do as if I carried a mortgage on the investment property? I live in CA and looking to buy in Indiana.
Thank you!
Anna