Financing a cash buy

[Jay M.]

I'll soon be financing a duplex that I bought with cash, then renovated. I bought the house as a buy and hold.

The property has appreciated a lot because of the area and the reno, and will likely appraise at a point where, if I finance at 80%, it won't cash flow (using the 50% rule). Of course nearly everything is new so maybe I'll still be ok.

So, I should either sell it, or finance less of the property? I could finance 97% and use the extra cash to invest in other properties - it won't cash flow for a while. For some reason I feel the route forward should be clear but for some reason I don't see it.