I'm very new to REI. I just bought 1 single family home and 1 duplex from a turnkey provider, all cash. I want to take out the equity in both to buy another property but not sure how. Here are some questions:
I didn't finance the purchases so if I go to the bank, would I be asking for a regular mortgage for them? Re-fi? Cash out re-fi? Not sure how I need to approach it. Since it's two properties, will banks do 1 loan for both places?
If I do go through the bank for leverage, is this counting against my 10 allowable "mortgages"? On BP they talk about the BRRRR but isn't that counting towards your 10 limits?
In your experience, what would you suggest I do to keep snowballing properties with leverage? My income allows me to purchase a bargain property every 2-3 months outright but is that the smart thing to do since cash-on-cash return would be low?
I am so thankful for this community. For me, REI is very intimidating. I study a lot but always feel like I don't know what I'm doing or I'm not doing what's be for my situation
You can take a commercial mortgage out of these income properties homes using 70% rental income toward your income. I am sure it stipulates that income has been reported to IRS from the past years. If you live in one of these units then you get prevailing mortgage interest rates. Just make an appointment with your bank. A home line equity is another way to get cash when you need it.
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