• Question
  • i own 3 properties here in hawaii, but , even though they stay rented , i am always nervous about my

    Asked by a 84 year old woman from Kailua Kona, HI on 2/23/2013

    i own 3 properties here in hawaii, but , even though they stay rented , i am always nervous about my low levels of cash on hand, i have almost 0 debt. what is the wisest/cheepest way to bank $250,000 with out selling any property. total current equity 2.4 million. ??? aloha, donna

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  • Categories: Retirement Planning, Budgeting, Retirement Assets and Savings, Mortgage Refinancing, Maximizing Returns, Reverse Mortgages

Answers

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  • Editorial 


    NewRetirement

    San Francisco, CA

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  • Aloha Donna!
    Great job on living the dream!

    You are right though to be concerned about not having cash on hand. Have you considered a home equity line of credit? You could refinance one of your properties with a HELOC -- Home Equity Line of Credit. Should you ever need cash, you could tap your home equity and only pay interest on the money IF and when you actually withdraw it.

    Here are some refinancing resources:
    http://www.newretirement.com/Services/Mortgage_Refinancing_Calculator.aspx

    We wish you all the best!
    http://www.NewRetirement.com

  • Login to rate this answer:   Answered on 2/24/2013
  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • If you don't have enough income to qualify for a Home Equity Line of Credit (HELOC) on the properties, then another option would be to consider getting a HECM Saver on your primary residence - it functions likes a HELOC in that it provides a line of credit that you don't pay interest on unless you draw it down - however unlike a HELOC - you can get a HECM Saver if you have enough equity, are over 62 and have the right kind of home vs credit and income requirements. (Although some more underwriting may start happening in the future.)

    http://www.newretirement.com/Services/HECM_Saver_Reverse_Mortgage.aspx

  • Login to rate this answer:   Answered on 2/25/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.