Heloc or Cash for 2nd Property on SFH/Duplex. Refinance?
Hello BP,
I am just looking for some advice on my 2nd investment property. I have some potential equity in my primary residence and have some cash on hand as well. Currently house hacking my current home with two roommates and it is under FHA loan. Quick question. Should I try to Refi into a conventional for possible no PMI for more cash flow to rent in the future? Or should I leave FHA loan and buy 2nd property conventional with cash or potential HELOC? I don't believe I have 20% equity in home just yet, but could be close. Mortgage with PITI is a total of 1520 and I could rent it out for 1750 in my area with looking at similar homes on Zillow, Craigslist, Rent-o-meter, Etc. Without the PMI it would be around 1375. But is it worth it to pay for appraisal go through the Refi process? It would be nice to buy next property with FHA and house hack a duplex locally but cannot have 2 FHA loans within a certain distance from one another. I am located 40 mins south of Seattle BTW.
Long description. Hope it makes sense. Just need a little guidance.
Thanks,
Ryan