Equity loan for payoff question - complicated
Paid cash for a house on two acres (got a good deal - private distress sale) Want to take out an equity loan for about 40K for remodel. Can get a 4.5 adjustable from my bank which makes payments only about $200 a month. Also have a small rental where the payments are 447 a month with 4 years left and income is about 550 a month. Debating on whether to take out an additional 23K to pay off this loan. I would lose the writeoffs and tax benefits of a rental but on the other hand I would get straight income that is taxable of course. My head just isn't working and I can't decide if this would make sense financially. Any opinions? Or is there someone specific I can call to figure this out for me? Thanks.