Updated about 6 years ago on . Most recent reply
CASH REFINANCE?? BUYING SECOND PROPERTY
I bought an out of state turn-key property 2 years ago, valued at 165k in Atlanta. I put down 20% using an investment conventional loan (about a total of 30K). I have had a cash flow of about $450 to $500 a month from my tenants. The value of the property is now about 255k (+90k). I am ready to buy my next property. I am actually relocating to ATL for a job and I am trying to figure out the best approach to finance my next property?
My Thoughts: Do a cash out refinance and pull out about $50k to use towards my next property. I found a loan officer who will drop my interest rate 1%. I would like to buy my next property within the next 4 months. I have about 20k of personal cash I am willing to invest.
Questions:
1. Should I take out the full 75% of the appraised value? If so, do I hold on to the money amount not used in the sale of the 2nd home and put towards a 3rd house in the near future?
2. Should I buy my next property in Atlanta as a primary residence so I can bring less of a downpayment? ( I am not sure if I want to live in either properties, but I am open to the ideal).
3. I am open to investing out of state. Should I take advantage of the opportunity to buy as a primary resident or look out of state? If out of state, where are some places you would suggest I focus on?
4. If there is anyone familiar with the Atlanta market I would love to connect, I move back in about a month?
I know it's a lot of questions in this one post but any advice would be amazing. I am eager to start on my real estate investor journey but I'm not sure which direction to go. There are so many different methods/options to go.
My overall/ long term goal is to have enough residual income to replace my full time job.