second property........
bought my first rental property last year, paid cash for the property $24,000.....renting it out for $700 a month,,,,,just purchased my second property for $11,500 (cash)....renting it out for 525 a month....my question is i want to buy more property's but im out of cash what would be the best way of getting money out of one of these houses to buy another?
Jeff,
Assuming that your credit is good, you could certainly refi one or both of these properties to get your cash back out. Just be sure not to take out so much that the properties won't cash flow properly!
Good Luck,
Mike
Jeff, while paying cash for properties is a great way to get great deals, holding the properties long term with no debt held on the property leaves cash equity sitting in the waslls earning 0% interest and removes one of the two greatest advantages to RE investing in my opinion - leverage.
This is not to say that one should over extend or overleverage as moderation is good not just in drinking, sun exposure, or eating, but in applying leverage.
is it harder to refi if it is a rental then a primary resindance?
it definitely is....the LTVs and other ratios are more strict.