HELOC/HEL - Buying a property
Hi all! Sorry for the long introduction, but here it goes:
I have been on BP for a while now, but mostly just reading posts, checking the sale ads and listening to podcasts. I am looking to get into rental properties (buy and hold). My wife and I own a home that's probably a bit big to be considered a "starter home", but with the birth of our son in December and hopefully future children, we are starting to see that this house may not suit our wants/needs. My wife is on board with getting in to rental properties, more as a step toward financial freedom/additional stream of income. I am reading a lot about HELOCs and Home Equity Loans and how I might be able to get equity out to fund a rental property, but I have a question regarding our current, primary residence.
Question - We have a mortgage on our current home and would like to know the best way to mine equity out of the house to fund our next principal residence? The plan would be to keep our current home and rent it out (great schools and these houses are renting for $2,200 to 2,500/mo). Assuming cash flow would not be an issue based on our current incomes, what would you suggest we do? Thanks in advance!