Updated over 5 years ago on . Most recent reply
Turning my primary into a rental
I'll be looking to refi cash out my current primary home, use it as a rental. I want to take that money for a DP on a new primary. This will be my first investment property. Would a lender be willing to work with someone doing something like that? or do you think that would it over leverage? I'll still have plenty of emergency cash put up. But I've never done both at the same time. Or any other suggestions? I'll pull about $100k out and I'll leave 25% into my current home. I've thought about HELOC but I was told I should not use it for Long Term. Anyways thanks I'm advance.
Most Popular Reply
You will probably get less headache from the bank by doing a HELOC.
My suggestion would be to decide your game plan and know exactly what you want to do. If you are just taking equity out of your home blindly, then it could be a recipe for disaster.
Do your homework on what both entail, and what market youd like to invest in, as well as your strategy.
Cash out refinance you will be paying closing costs, HELOC you will be paying for the appraisal only. Cash out refinance you are paying for the borrowed money as soon as you close, HELOC you only pay interest on what you use (but at a higher cost).