How much and how can do I take money out of my rentals?
Hello,
We bought our first duplex in 2010 and have been renting 1 or both sides out since. Last winter we were about to sell figuring we were close to the top of the market but right before we listed our neighbor approached us about buying theirs. Considering that it was identical to ours and knowing what we get for rent we decided to go ahead and buy. We bought it as a primary residence and moved into it so we did not have to make a large down payment.
Now here is the question: If we want to continue down this path how do we take cash out of both to finance the next? We are not worried about cashflowing, even if I pulled 100% out they still would CF just fine.
- Currently the 1st duplex is bringing in $2600 a month in rents, it is worth around $250,000 & we owe about 153,000.
- On the second duplex we collect $1,100 in rent each month while living on the other side, It is worth around $250,000 & we owe $189,000.
I remember something about the 1st property being seasoned and therefore we should be able to take out 85% of the value based on the property alone regardless of our personal finances. Can you tell me if this is true and if so what lenders do I need to talk to?
Thanks for the help.