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Updated about 5 years ago on . Most recent reply

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John Windsor
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How do I strategically finance this house hack?

John Windsor
Posted

I am currently analyzing a potential house hack on a historic home. The property has 2 apartments that bring in $1200 /mo. total. I have $100k+ in equity in my current primary residence (value aro. $325k) and I want to use that equity to buy the house hack at around $475k - 500k. Then I will Airbnb my original home ($30k - 50k revenue potential). 

My concern is I am unsure of my strategy for financing. 

I am thinking I will cash-out refi my current residence, then use that as a down payment on the new property. I want to hold onto some of the cash for prepping/furnishing the Airbnb and for reserves (probably aro. $25k). 

Will I run into issues if I cash-out refi my home and then try to get a loan immediately after to move into this property? What do I need to disclose to lenders, etc.?

Does anyone have any other creative ideas on how to do this deal? And any words of caution? Thanks!

-John Windsor

P.S. This is my first post, but I hope to be a regular contributor as I continue to learn and grow my investing abilities.

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John Windsor
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I should have mentioned that the 2 600 sqft apartments are in addition to the large historic home that I hope to live in. There is also a daycare running out of the home that could be additional income. The home has been updated with modern wiring, plumbing, brick and roofing. 

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