RE Strategy Advice on Purchasing Primary Residence
Hi BP Forums,
Relative new investor here with a Real Estate mortgage strategy question. The goal is to purchase our primary residence; I'm looking for various strategies on how to do so. We have a place we'd like to make an offer on.
My wife and I's scenario is this:
We own a 2 family in Boston (proper); live in half and rent out the other. Owned it for 2.5 years and due to the very strong rental and sale market we never have an issue renting it out anytime of year for what we ask.
We also own a second home used as a local VRBO rental property as well for our enjoyment. Bought it less than a year ago, 2017's rental income covered our expenses on the home for the year. I expect better performance in 2018.
We are looking for more space and want to make an offer on a townhouse close-by. The strategy would be that we rent out the unit we currently live in the multi family and move to the townhouse. Once fully rented, the MF rent will cover our expenses (plus add $1,000mo).
My question is what is the best loan strategy for acquiring the new townhouse? For example, do a traditional mortgage? Look into a portfolio/local bank for all three properties (re-finance 2 and get a new loan for the townhouse)? For what it's worth there is approx $100k in equity in the MF. Possibly use some of the equity to offset the down payment?
I can fill in the blanks where need be...
Thank you in advance,
Frank