All Topics / The Treasure Chest / Another senario how should it be Managed

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  • Profile photo of willrogerswillrogers
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    @willrogers
    Join Date: 2003
    Post Count: 25
    July 8, 2003 - 3:46 pm

    I am currently living in a house in ASP that I purchased 5 months ago. I am in the process of buying (looking for the money) another, it looks like it is going through.The second purchase will become the primary residence and the first an investment. The first house can be rented out and cover the morgatge payments with about 80-100 dollars left over. Is it a good idea to use the extra money to help pay off the second property. What tax things do I need to know about. Also there is another investment property (commercial) that I have 1/3 ownership in. Can some one please give me some ideas on how to manage this before it gets out of control. Im a newbie

    Profile photo of hwd007hwd007
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    @hwd007
    Join Date: 2002
    Post Count: 247
    July 8, 2003 - 4:29 pm

    Will sounds like you’re on track to me. Just divert any excess cash flow to pay off your non tax deductible debts first. That’s all I can suggest at this stage.

    Profile photo of willrogerswillrogers
    Member
    @willrogers
    Join Date: 2003
    Post Count: 25
    July 8, 2003 - 4:58 pm

    Thanks hwd Ill keep you posted on how things are going. Ideally it would be good to get things working for each other. Cheers Will

    Profile photo of DramDram
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    @dram
    Join Date: 2003
    Post Count: 82
    July 9, 2003 - 1:08 am

    I agree…..put excess cash flow off the non-deductible load (investment) to clear this debt ASAP. This will also help you to generate some equity. This leaves the tax deductible loan to generate the extra cash flow.

    Is the commercial property producing a +ve cash flow?

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