Financing my way to the next rental unit
I have about 45 K left (@ 5.25%) on my "only" 3/2/2 rental property. I am hoping to pay it off by taking out a 401k loan and then pay the same 5.25% mortg. interest into my 401K loan thru paycheck deductions. The property will be then worth 140-160 K worth which may qualify for a HELOC/Equity loan to buy another property. Welcoming your thoughts BP members. Is this the right step for my next move?e
My current home is valued at around 240-260 k or so, with 160K in primary mortgage. So maybe another 50K or so equity here. Is HELOC/Equity loan the best path to my next rental property.
Bigger goal: I want to get to a 10+ unit ownership in the next 5 years. Suggestions, advise welcome.