Financing Properties

[James Maness]

I have a rental property in Virginia and looking to buy more in the Baton Rouge area.  How can I use the equity in that property as a down payment for more properties in this area.

[Robert Leonard]

I would talk to a local banker that's big enough to be open to doing business out of the area. I haven't personally done business with either of them but Bancorp South and Iberia Bank come to mind. I would request a line of credit for the equity in the Virginia property and use it to buy with all cash here. This strategy only works if you buy right (purchase and rehab below 80% of ARV). Then refinance the property to repay your line of credit and repeat.