Expert: Dick Dennis - 8/16/2008

Question
I own w housed on a lot. My brother lives in one building and we rent out the other. We purchased both houses as one. My brother pays all the maintenance, taxes and insurance but gets no write offs. I have about 200k equity in the house which I would like to take to put a down payment on another house in which I want to live.

To do so:
Do I sell to my brother so he can get a new loan?
Sell one house or the rental property to my brother?
Take a cash out refi?
Sell both houses and take the equity out?

Take the money out which I will split with my brother?  

Answer
I favor the first choice, Jo. How is it that your brother pays everyting to maintain the property? Has he been earning interest in the property or does he live there and you're giving him free rent?

Or do I misunderatand? First you said, "I own." And then you said "we purchased . . ." So, there is no way to understand right and really advise you since I do not know who owns the property. I wish you well.

Dick Dennis