Updated over 6 years ago on . Most recent reply
Month 1: Primary Residence + 3 Units - now what?
Hi BP.
As per the title, I now have a primary residence and a 3 unit mfr. It's the 6th of June and I'm expecting my first rental income deposit ~ the 10th. So the big question is - now what?
A little bit of context and numbers (budget).
Primary Residence:
- P+I: 2,480 / month (4.25%) 30 year fixed
- T+I: 475 / month
- Granny Suite Income: 1,350 / month
- Net: 2,955 (expenses) - 1,350 = 1,605
3 Unit MFR:
- P+I: 1,320 / month (5.75%) 30 year fixed
- T+I: 516 / month
- Income: 2,545 / month
- Net: 1,836 - 2,545 = 709
We're setting up a HELOC with our local bank and we are able to take use ~ 120K from our primary residence. Here's the question:
Use the HELOC to pay down the rental property?
-or-
Use the HELO to invest in a new rental property (assuming 25% down)?
Assumptions:
- we'll use about 10K of the HELOC as our paydown based which we'll be able to reuse every 3.5 months using all our income and pushing all our expenses into the HELOC.
- we have a buy and hold hold hold strategy in mind and don't plan on selling any properties
Thoughts BP Forum?