What if I cannot get a Home Equity Loan?
I just purchased a duplex via owner-occupied FHA loan. I want to buy another rental property in the future. I am looking at two options to do this: 1. Pay a minimal monthly amount on my current mortgage and save for the large down payment of my next property. 2. Focus my income into paying off my mortgage as fast as possible and expect to get a home equity loan. I like the second option. My thinking is this: As a pay off my mortgage I will save on interest and build equity in my home. After a while, I would use that equity to get a home equity loan to buy another rental property. Does this strategy make sense? I imagine there are benefits to both strategies. Could I combine a home equity loan with other loan types for higher leverage?