how do I acquire my next investment property?
Hello,
I am in the process of buying a rental property(1) for $400k with all cash (needed to get the best deal). I'm funding this from HELOC on my primary. I will most likely get $450k in heloc. For the first 6 months, interest rate is 3.75% on heloc. I would like to buy another property (2) right after all this is done ( once I rent this out). What is the best way for me finance the next one ?
1. Get a mortgage on property (1) and use that for 20% down payment for property (2) and put the remaining back to heloc ? Do I have to wait for sometime , either to get mortgage (1) or mortgage (2)? Is Rental lease agreement on property (1) good enough to include rental income while calculating debt-to-income ratio?
2. Get mortgage on property(1) and use that to do cash only deal on property (2) and secure mortgage on that later to pay back heloc ?
I’m confused which way to go and if I will qualify. Appreciate Any suggestions/input .
Thanks!