Ready to buy second deal but need advice
Following up on my last post here. In the spirit of brevity, I'll bullet poi nt my current situtation:
-House hacking a 3-flat in Chicago; the rents pay the mortgage and I profit 40 dollars a month
-If I move out, the building will cash flow about $1000 per month
-Purchased using FHA financing 3 years ago
-Refinanced out of PMI a year ago
-A year ago, the house appraised for 60k over what I paid for it
-Have about 70k in equity now
-Planning on holding onto this property for the cash flow
I want to use FHA financing for my next deal, which I will move into and hack similar to my situation now. Should I use the equity I have in this place and borrow against it to get the down payment on the next property? What are the pitfalls involved in that strategy if any?
Is there a better strategy I'm not considering?
Any questions that will help clarify my situation please ask.