How should I do this?
I started as a real estate agent in 2012. Took on a full-time job and have decided to do some real estate investing on the side. I purchased my first investment property in 2014 all cash for $200k. I am seeking to buy a second investment property in the same complex since the area is great and school district is fantastic. I am not sure how to proceed.
Since the first property is an investment property, my loan officer instructed me to buy the 2nd property as my first time residence with 5% down. All in with fees, I am looking under $20k. So my mortgage payment on that would be a wash from the rent that I would be getting.
So to recap, I haven’t touched the first property that is fully paid for, and I have financed the second property and the rent payment is a wash.
My other option is to do a cash out re-fi on my first home and pull out the equity of the home and use that money to buy a second property all cash. Then the rental income on the first property would be a wash for the mortgage on the first property and I would own the second property free and clear.
I am not sure what way to go because I want to maximize the tax advantages, etc and leverage the money correctly.
Any help would be greatly appreciated.