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Updated almost 3 years ago on . Most recent reply

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Mario Morales
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How to leverage equity-HELP

Mario Morales
Posted

I just got a multi-unit and it just so happens that it requires a bit more cash, such as plumbing, electrical etc,. I have two other buildings, and I have a high amount of credit card debt (over 50k) due to the unforeseen surprises of the latest building. I would like to pay off the debt but I would also like to tap into the equity of one of the buildings for my next purchase. Any advise. 

building 1: available equity 110K , monthly cash flow about 1100

building 2: available equity about 50K, monthly cash flow about 700

building 3: under renovation, monthly negative 1600

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Chris Seveney
  • Investor
  • Virginia
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Chris Seveney
  • Investor
  • Virginia
ModeratorReplied
Quote from @Mario Morales:

I just got a multi-unit and it just so happens that it requires a bit more cash, such as plumbing, electrical etc,. I have two other buildings, and I have a high amount of credit card debt (over 50k) due to the unforeseen surprises of the latest building. I would like to pay off the debt but I would also like to tap into the equity of one of the buildings for my next purchase. Any advise. 

building 1: available equity 110K , monthly cash flow about 1100

building 2: available equity about 50K, monthly cash flow about 700

building 3: under renovation, monthly negative 1600


What you did not mention is what are the values or LTV's of those assets. you could try and get a LOC or refinance but you probably cannot exceed 75% LTV. Might need to sell one if they are high.

  • Chris Seveney
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