2nd rental property finance options
The property that I currently have for rent was my first home that I
purchased with a USDA Rural development loan. I have a positive cash
flow of $400 per month for renting it out. The home is worth about
$190,00-$195,000 and I have $140,000 left to pay on the loan.
I'm currently looking at a duplex that is selling for $130,000 and both units are being rented out for $725. I'm thinking maybe improved it some and rent it out for $800-$850 per month after the current tenants move out.
Should I do a Cash out refinance to purchase my second rental property or is there any other good suggestions out there?