Refinance current rental to buy new property out of state?

[Katie Robillard]

Hi everyone. I currently live in Massachusetts and am considering purchasing a single family rental property in Tennessee. I've heard that financing can be a little more challenging out of state. I was wondering what others thought of possibly refinancing an in state property (I have a duplex in Massachusetts with no mortgage currently) to purchase an out of state investment. I'm wondering what benefits or risks may be - if it's even possible. Any suggestions regarding another approach are greatly appreciated as well.

[Jonathan Styer]

Hi @Katie Robillard, I am not familiar with Tennessee but here in Ohio it would not be an issue. Are you thinking of doing a cash out refinance and then using cash to buy in Tennessee? Either way would be possible, but if you're looking to finance the new property, your best bet will be to find a local lender to help you in Tennessee with financing. Try to hook up with a Realtor there who is familiar with investors and they should be able to point you to a lender that can help you. 

Good luck!