Which "Level" of Rental Property Makes Sense For Me?
Hello BP, I am learning so much from everyone and I hope I can contribute to newbies like myself once I have some experience to share.
I am currently a homeowner & have 100k equity built up with a remaining mortgage of $125k and 15-20k cash to invest with. I am looking into purchasing my first investment property - most likely SFH as I will be priced out of multi-family unless an incredible deal comes up.
Two options I am considering & would appreciate some input:
1. Cash out refi & buying a "lower level" property for cash, making minor improvements & renting out.
2. Cash out refi to finance down payment of "better" property (nicer house, better location, higher rent, etc..), make improvements as needed & obtaining 2nd mortgage on this investment property. **
**I shouldn't have an issue obtaining 2nd mortgage as I have excellent credit & decent debt-to-income ratio
Quality of tenants & appreciation is of utmost importance to me but cash flow is king right...
Any feedback or suggestions on what a pro would do is much appreciated!!
Raleigh, NC is still experiencing a strong sellers market but should have some opportunities pop up as a result of the pandemic.
Thank you!
Sean