I am a soon to be in the rental market and am new to being a landlord. Currently me and my siblings are fixing up a house to go on the rental market (my Dad's old house).
I also have been living in a house for 20 years and have probably 160k equity in it. It's a small (1150 sq foot) house. I have about 45k saved up.
I was thinking about moving out and renting my current place. However, I thought of an alternative: Sell the house, and from that, I could buy two or three of rental properties and have some money left over. One downside to that is for the new properties, I'm guessing that I wouldn't make much profit right away, because the mortgage would be higher than the home I have been in 20 years. Also, I still need to get more well versed in valuation of properties. So far I have done some reading and online seminars. But, I'll work on learning more.
Any opinions or ideas? Which scenario do you think would work better?
Refinance to pull equity out or, depending on first mortgage terms if there is a first mortgage, get a HELOC and use the cash to acquire additional rental(s)
Ok thanks. I will look into loans. Although, I thought a way that would avoid personal debt and more interest would be better.
What is better about the loan rather than cash? Is the idea to hold on to the house I have for longer? Note that I plan on moving out sometime soon anyway.