Funding first rental

[Matthew Weirath]

Ok, I'm really looking for advice and curious to see what others would do in my situation. I currently own my primary residence and have about 60k in equity. Another 74k in index funds and 10k cash. I've been trying to figure out what the best way for me to get my next property should be considering that I don't want to move into it. I have access to a VA loan but I like where I'm at now and don't want to do another move right now. I've considered taking out the equity in my house, taking a loan against my investment acount or just saving up for another year to have the cash on hand. I'm curious what you all think though. Thank you in advance.

[Jonathan Greene]

You can get more than one VA loan depending on your allotment and you don't need to owner-occupy the second one so I would look into that first. I would NOT remove any money from index funds as I expect those to be a great earner into the future and very steady hedge against other avenues. If you have 60k equity and 10k cash, slow down and remember this - you need 15k for reserves for a new property and you should always only use half of your equity which would leave you with 15k for downpayment and 10k cash for renovation.