Updated almost 3 years ago on . Most recent reply
Finance Decision Crossroads for 2nd Property
Hello, BPs community!!
This is my official 1st post! A total Rookie here but ready to learn about the RE investment market in South Florida (for now).
I already have a Condo (primary residence) and planning to buy a 1st single-family home (to be my primary residence) and rent-out my Condo. The current mortgage of the condo is at 4%, and the property value has increased from 195 to 360K.
To get some cash from the equity of the Condo and purchase property #2, I have contemplated the refi-cash out AND the heloc financing options. But refi offers 7% APR average (as a primary residence), and HELOC 8.25% flexible rate.
With the refi, I am struggling to lose my 4% interest rate and obtain a higher one. With the HELOC, the fact that is a flexible rate is a concern. However, getting refi/heloc loan and a loan for house #2 is totally possible as I have excellent credit and a good w2 job.
Also, I was told that If I obtain the refi or HELOC from a primary residency loan (lower rate), I would have to live in property #1 for 6 months before I can use the money to buy house #2 (as a new primary residency rate) as well. Unless I do the refi as an investment property with a higher rate but with the ability to use the money fast on purchase #2. I have calculated all numbers as much as possible and numbers are coming kinda close, so I am uncertain how to proceed. Any insights or guidance? I would truly appreciate it. Thank you!