Financing Second Rental Property
Here is my current situation, I bought my first rental property using an equity loan from my primary residence. I am looking to move forward and expand my buisness. I have listed below the numbers to get an idea of what I am working with. Any financial advice on how to go about getting my down payment for my second rental property using my available equity is appreciated. I can pay the 23k loan off but looking to keep my cash. Thanks!
- Rental property appraisal value - 116,000 owing 90,000 with 26,000 equity
- Primary residence appraisal value- 347,000 owing 280,000 with a 23,000 equity loan
Rich-
Most Popular Reply
Interested in moving? If you want to get creative, you may consider turning your current primary into a rental, and moving into another home that will eventually be a great rental, using a 5% down conventional loan. Of course, your debt to income ratio needs to support this, as you will need to qualify for both payments until you have rental income on your tax returns. If that is not an option, some investors use 401k loans or liquidate Roth's or stocks....just a few ideas.