Advice for Financing Third Rental Property
Hello All--First post here, so please excuse my inexperience in advance--still learning a lot so appreciate your advice.
A little background, I purchased a foreclosed duplex in 2013 in lakewood, ohio (suburb of cleveland) with a FHA rehab loan. We renovated the house, and have been renting out the bottom unit ($900/mo) while living in the top unit. We refinanced a few years ago to a conventional 15 yr. mortgage to get rid of the PMI. We are basically living for free. In early 2019 we took out a HELOC on the home for $100K, bought another duplex in old brooklyn (inner-ring suburb of cleveland) for $90k. We paid cash for the house using almost all of the heloc money. We then renovated the house with the remainder of the heloc plus another $15k or so cash. We have been renting out this house since january ($925 for top and $850 for bottom). My question is: should i cash-out refinance this house and pay off the heloc? Then use the heloc money again to buy another rental? or remortgage the house? Also, a little more background: we're looking to move out of the lakewood duplex soon and rent out the top unit that we are currently living in (expecting $1200/mo). So we intend on living in the next property. Thanks again in advance for any advice you can give me!