Have about $130,000 I can pull from primary. What to do…
My wife and I are looking to purchase a cash flowing property. We have about $130,000 we can pull from our primary residence using a HELOC or Cash out refinance. Our plan was to stay living in our current house. Completely rent out the investment property.
Looks like we will need 25% down which limits our price point. We are going back and forth on using a HELOC or just cashing out. Our current mortgage is a 15 year at 2.5% interest with only 13 years left. We would have to cash out and go to a 30 year and the payment would still likely be a little more than we're paying now cause of the interest rates and additional money coming out.
Properties in our area and price point are cash flowing about $1000/month after PITI and utilities. Does it make sense to add all the additional Al debt and risk for $1000 a month? Need to be pointed in the right direction. Open to ideas.