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Chris Schorre
  • Investor
  • AUSTIN, TX
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Use home equity or use bank loan to purchase single family house?

Chris Schorre
  • Investor
  • AUSTIN, TX
Posted Jun 28 2019, 13:42

Hi everyone, total newbie here...my first post. I am looking to purchase a single family home in Austin Texas for about $500K and then rent our existing home (also in Austin) - which we can net cash flow about $1,000/month. We have about $900K in equity on our current home and roughly $150K in liquid cash. So, my question is what financing option should we explore to buy the second $500k home? Bank financing with 20% down? Or home equity loan on primary home? We both have excellent credit of 810+.  After we buy the $500k home (which will become our primary residence), we do plan to buy more rental properties in Austin. Appreciate the advice. 

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