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Refinance Rental Property - Don't Sell It

You own a rental property for years, and never see the "big pay-off." Is it time to cash in on your investment, now that you've paid down the mortgage, and values are up? Maybe not.

The Problem With Selling

Selling means you'll have to pay a large capital gains tax. This can be avoided if you reinvest through a 1031 exchange, but then the point is that you want your money, right? Also, a good rental gets more income as rents go up. Do you want to lose this inflation-indexed retirement plan? What's the alternative?

Refinancing Rental Property

Have you considered that if you refinance, you can get much of your gain out of the property, without paying a penny in taxes? Borrowing money is not a taxable event. You can take it and spend it however you want, and still keep your rentals.

Let's look at an example. Suppose you have owned a small apartment building for years. You bought it for $240,000, with a downpayment of $40,000, and mortgage payments of $1650 monthly on the balance. Now it is worth $400,000, you only owe $120,000, and your cash flow is around $800/month. How do you get at that equity?

A bank will probably loan you 70% of the value, or $280,000. After paying off the first mortgage, you are left with $160,000. With todays lower interest rates, your payment on the new mortgage will be about the same. At most you might lose $50/month in cash flow.

An even better scenario: Use $40,000 for high-return upgrades to the property, such as carports or laundry rooms, and then raise the rents. You could have $120,000 left over to spend any way you want, AND have higher cash flow. Does that sound better than selling your retirement plan? Don't sell. Refinance that rental property!

posted by aasdas38493 @ 10:54 PM 0 comments

League Two Betting Review - 29 January 2006

Wycombe Wanderers remained top of League Two despite a coupon busting performance by failing to beat Stockport County. After only managing a draw at Barnet last week, the bookies priced Wycombe at a best price of 2/5 to see off Stockport who had won away just twice all season.

However, midfielder Matthew Hamshaw gave Stockport a shock 38 minute lead at Adams Park. The Hatters almost hung on for an unlikely 6/1 victory until striker Ian Stonebridge struck an equaliser with one minute remaining. Stockport are now unbeaten in four matches.

Grimsby Town stay in third despite slipping to a home defeat against Peterborough United, their fourth game without victory. Michael Reddy gave the 5/6 home favourites the perfect start in the 29 minute although Peter Gain levelled terms for Peterborough almost instantly. Mark Wrights side found a winner through Danny Crow to seal a win at 3/1 and edged them into a play off place.

Second placed Carlisle United wasted an opportunity to go top of the league on Sunday, slumping to a 3-0 defeat at Macclesfield. Two goals in the opening 10 minutes helped seal a 9/5 victory for the Silkmen.

Northampton were one side that made up ground on the top three with a 2-0 win at Bury. An own goal from Andy Parrish and Andy Kirks ninth goal of the season wrapped the match up for the 6/5 Cobblers by half time.

Rushden & Diamonds gave their survival hopes a fighting chance with a 3-0 victory over Oxford United. Three goals in the opening 22 minutes levelled 6/4 Rushden on points with Stockport.

With both Rushden and Stockport picking up points, Torquays win at Shrewsbury kept their heads just above water. Striker Paul Robinsons first goal since November ensured 10/3 outsiders Torquay remain one point clear of the drop zone.

posted by aasdas38493 @ 7:23 PM 0 comments

Why Organic Cotton?

Organic cotton begins with living soil. This means the soil has not had any chemicals used in it for at least three years and it has been enriched with compost and other organic matter. Enriching the soil in this way ensures vigorous plants which in turn means they will be better able to be bug, weed and disease resistant. Cotton plants need huge amounts of nitrogen; so organic cotton farmers use chicken manure or plant cover crops of Vetch or Fava Beans all of which supplies the cotton plants with the desired nitrogen. These replace synthetic fertilizers that are harmful. Organic farmers also make sure they have good bugs in their fields. These dont harm the cotton; they prey on the bad bugs that would harm the cotton plants. These bad bugs are the reason that regular cotton farmers feel the need to use chemical sprays. How much better it is to use natural ways of controlling them! Weeds are managed by mechanical or hand-hoeing methods. When it is harvest time the cotton is handpicked!

The processing of organic cotton is done with potato starch instead of chemicals. No chlorine is used. When spinning the organic cotton fiber, natural easily biodegradable oil is used. No finishes are added! It comes to you pure! Being chemical free can be a life and death matter!

Cotton is a very versatile fiber and almost any type of fabric can be made from it. It conducts heat well and soaks up to 27 times its weight in water. It is also very comfortable and durable. Think how important all these qualities are when it comes to your bedding and clothing!

posted by aasdas38493 @ 4:16 PM 0 comments

What is It About Horses and Young Girls?

In a world of computer games, theInternet and shopping malls, what is it about this four-legged farm animalthat seems to capture the heart of most of them?

According to a recent study by the American Horse Council, 1.9 millionAmericans own horses -- just over 4 million people are recreational ridersand 3.6 million show horses. The horse industry has a $112.1 billion impacton the US gross domestic product: greater than the movie industry and thetobacco manufacturing industry.

Even with people mainly in cities, horses have really disappeared from dailylife for most North Americans. And yet their appeal hasn't faded.

I wonder why.

As a youngster, I was enthralled with horses. I read books about horses,took riding lessons and all of my drawings were of horses. It's a girl thingmostly. I didn't come from an equestrian background.

It does have benefits. You learn to control a large muscle-y animal whichmay prepare you for being married to another version of one. A horse weighsabout half a ton. You can't be shy around a horse. You learn to be confidentand firm.

The general care of a horse which includes brushing, mucking out stalls andfeeding gives you a feeling of responsibility. It's a healthierenvironment - a riding stable can delay the problems of dating and drugs. It's a great physical activity.

In an age where teenagers find that television's problems are dealt with in30 minutes, riding takes a longer, more dedicated approach. I think girlswho ride make better drivers because you're trained to look forward and planwhat's ahead. No one wants to get hit by an overhead branch on a trail. It'is a monetary investment but I think it's on par with boys playing hockeyand the equipment that entails. Overall, I would say it is money well spent.

posted by aasdas38493 @ 3:48 PM 0 comments