Leverage Primary Residence into a business
Hi, I'm following the moderator's helpful template in hopes it will help stimulate discussion on how I can start a small business in rental/property management using my almost paid off primary residence. My primary question is what is the best way to leverage the house I have? What loan products are best suited for my situation/goals?
My and story: Establish small rental business that I can leave to my children. I’m 10 yrs from retiring.
Type of property: Single family home (s) or multi
Location of property: Texas, Harris County, Inside the beltway, College Station AND Italy
Purpose of financing: This is where I need help. Cash Out Refinance ? I have <$100k left on my current mortgage and will be paid off 09/2022.Would use the equity in my primary residence to purchase and rent single family or multi homes ($350-$450k
Type of financing sought: Not sure,.
Current or prior ownership of real estate: Primary residence in Houston, and Apt. in Italy
Occupancy: Investment with traditional long term leases. I rented the primary residence out for 7yrs when I was transferred overseas. The 2nd, could be rented and managed by my son. Perhaps when he is attending college at A&M? Also have a Vacation apt. in Italy that we would like to rent out as well for short term (AirBnB like)…maybe even buy another one?
Value of property at present and/or your offer price: $750k primary. Italy $200k
Current rents per month: $ Primary residence was getting $45,00 6 yrs ago
Fair market rents per month: $ same?
Down payment or equity: Prefer as low as possible. Buy and Hold
Source of down payment funds, if applicable: own funds, 401k or secured borrowed funds (HELOC, etc)
Income Source: Salaried – Long term stable job as an engineer
Gross monthly income (optional): $>200k
Monthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: $ 1000/month
FICO: Excellent, Credit issues: none
Additional details: Would like to make the business international in the long run. We may go overseas again and will use property managers to help us.