Funding Downpayment/Loan options using existing properties
Hi BP Friends!
I’m a new(er) investor in Wisconsin in need of some advice on how best to fund an off-market 8 unit (long-term). Purchase price 700K.
A little about me: W2 job (160K), credit score 800, ~600K in 401K. 3 duplexes nicely cash flowing at 500+/door in Wisconsin, 3 other cashflowing properties in Illinois. All of the investment properties have 30yr mortgages with low interest rates (3.25-4.50), three units have been renovated (one was a major update/full gut), so I have some equity I can pull out. Properties were all purchased within the last 2yrs. No commercial loan experience. My preliminary numbers have DSCR at 1.23%
Question: How best to fund downpayment? Should I cash-out refi a few of these properties? Should I borrow from my 401K? Is there a loan product that I can combine mortgages and cashout (cross-collateral?)
Thank you!