Airbnb Invest Advise - How to structure a deal for more property

[JR Woolf]

Looking for some solid advise.  I currently own three properties that are all vacation rentals (airbnb, VRBO, etc).  2 have been in my portfolio for 1.5 years and 4 years respectfully.  Both have a conventional mortgage and cash flow very well since they are in highly sought after vacation areas.  I just acquired a third one which we purchased for cash approx 4 months ago  due to some fortunate inheritance.  It is in the same area as one of the others and we anticipate yearly gross earnings of 50k+ based on the performance of the other rental.  That being said- we are looking to acquire a 4th rental and trying to figure out our best strategy to finance the new acquisition using the equity from the newly owned cash purchased property.   Any thoughts appreciated.  As far as numbers go - purchase price was $379k.  We added roof, central HVAC, and some structural repairs.  New value is probably around 400k.  Purchase price of the property we want to acquire is asking price of $300k.  It has an existing rental history of 25k annual.  We plan on doing some upgrades and project net short term rental revenue around 35-40k based on our experience in the market with another home we own.   Thanks in advance for any ideas. 

[Parker Borofsky]

Thank you @Julie McCoy!  @JR Woolf - I would definitely recommend that you look into a cash out refinance to pull out some of the equity. The max LTV for a Conventional cash out refi for a 1 unit investment property is 75% of the value. If you purchased it less than 6 months ago, it should be eligible for a cash-out refinance based on 75% the purchase price. If closing for the cash-out refi is completed at 6 months or greater than the date you purchased the property, it would be eligible for value to be determined with a new appraisal, which of course is beneficial if you have done any work to it to improve the value. Hope that helps!