Should I buy this property as a rental investment?

[Kenny Wilson]

Hey, everyone. I am in the market for a home, but there is also an excellent opportunity to purchase a rental property that has some equity. Buying the rental would obviously take the cash that was intended for my primary resident I was looking to purchase and would not have as much cash to put down if any cash. There would be solid cash flow with the property and I have been trying to think of creative ways to make it possible to purchase the cash-flowing rental and still be able to purchase a new primary residence. Can anyone help with any ideas that might work in this situation please? Thank you all in advance. I really appreciate it.

[Beau Ryan]

If you are going to go the conventional financing route you will need 20% down to purchase the rental property.  If there is a good amount of equity in the property currently then this is what i would do.  Buy the rental with 20% down.  Refi or take a line of credit out on the profit in the amount of the equity that is there.  You will have to keep at least 20% equity in the property.  Use that money to purchase the home you want to live in, You can get a loan with 3-5% down for the owner occupant home.  This way you can pick up both properties.