funding my next deal??

Question

I own a duplex with about $70,000 equity. Cash flow on it is $600 monthly with a interest rate 5.75%. I just sold a commercial property that I own free and clear on contract for deed which gives me another $1000 month cash flow. What's the best option to finance another investment property without a large down payment or refinancing the duplex. Any companies out there that will give credit against the duplex equity or finance 100%of the deal? my credit score is 780 -800.

Michael Eskenasy · Answer

You’re actually in a pretty strong position.

I wouldn’t touch that 5.75% first mortgage unless somebody gives you a very compelling reason to. You’ve got equity, an excellent credit profile, $600/month coming off the duplex, plus another $1,000/month from the contract-for-deed sale.

That gives you pieces to work with.

I’d look first at whether you can pull a second-position loan or HELOC against the duplex without disturbing the existing mortgage, then use that capital as part of the acquisition stack on the next property.

But I wouldn’t chase “100% financing” just because it sounds attractive.

The real baller move is controlling the next asset while keeping enough cash behind you that a roof, HVAC, vacancy, or ugly surprise doesn’t put you on defense.

Find the right deal first. Then structure the capital around the deal.

With your credit and existing cash flow, you don’t need a miracle lender. You need a property good enough that multiple lenders want to finance it.

Andrew Caranto · Answer

An investment property HELOC or a second mortgage behind that 5.75% first is worth asking about if keeping the first intact matters most. The $70k equity number alone won't tell a lender what they'll actually lend, their combined loan limit and your current payoff drive that.

Bring the contract-for-deed docs and payment history so they can count that $1,000 a month properly. I'd also leave room for vacancy and repairs rather than commit the duplex's full $600 cash flow to a new payment.

Cheri Banet · Answer

That sounds promising. I would love to connect with you.

Nicholas Floyd · Answer

With a 780–800 credit profile, I’d definitely look beyond just refinancing the duplex or pulling equity out of it. Strong personal credit can open the door to business funding options that let you preserve that equity and keep more liquidity available for the next deal.

I help investors access business capital through options like business lines of credit, 0% APR business credit cards for qualified borrowers, term loans and other funding structures. Depending on the overall business and credit profile, that capital can be useful for eligible acquisition-related expenses, rehab, materials, carrying costs, reserves and unexpected project costs.

The advantage of having strong credit is that you may have access to lower-cost and more flexible capital than someone trying to fund a deal after their cash is already tied up. I usually prefer building the funding strategy before the next property is under contract, so you know exactly what capital is available and what each source should be used for.

You already have equity, cash flow and excellent credit, the goal would be to leverage the strength of that profile without unnecessarily disturbing a 5.75% loan that’s already performing well.

James Driscoll · Answer

The contract-for-deed income is worth a closer look before anything else gets structured. On a DSCR loan, that income generally won't factor in at all since qualification is based on the subject property's rent. On a conventional investment property loan, it may count if the agreement is properly documented and shows a consistent payment history, typically 12 to 24 months depending on the program. That distinction alone could shift how much you need to pull from the duplex equity, or whether you even need to tap it.

James Driscoll

Clay Edmonds · Answer

With a 780–800 credit score, positive cash flow and equity already built into your portfolio, I wouldn't start by asking, “Who will give me 100% financing?”

I'd start with: “How can I leverage what I already own without giving up my 5.75% mortgage?”

And yes, there are options worth exploring.

There are HELOCs, fixed second mortgages and DSCR-based second-lien programs available on investment properties. Depending on the program, that could allow you to access some of the $70K equity in the duplex while leaving your existing 5.75% first mortgage untouched.

That money could potentially become part of the down payment or acquisition funds for your next property.

Then finance the new property separately.

Depending on the deal, I would compare conventional investment financing with a DSCR loan, where the property's rental income is a major part of determining whether the property supports the new debt.

I would also have someone look carefully at that additional $1,000/month you're receiving from the contract-for-deed sale. Depending on how the agreement is documented and the loan program you're using, that income may be useful in qualifying.

But I wouldn't make 100% financing the goal.

If you finance 100% of an investment and then have a vacancy, HVAC replacement, roof problem or unexpected $15K repair, you don't have much margin for error.

I'd run three numbers:

1. How much equity can I access from the duplex without destroying its $600/month cash flow?

2. What will the next property actually cash flow after ALL expenses and the new debt?

3. How much cash will I still have available after closing?

That third number is important.

Sometimes the best investment financing isn't the structure requiring the least money down. It's the structure that allows you to buy the next property without weakening the ones you already own.

I'd protect that 5.75% first mortgage if the numbers support it, investigate a HELOC or second lien against the duplex, and then structure the financing on the new property separately.

You have good credit, equity and cash flow. Those are all tools. The trick is putting them together correctly rather than replacing inexpensive existing debt unnecessarily.

Caleb Brown · Answer

I don't see you being able to borrow against the equity, 70K is not a enough. You can explore hard money since it can be a lower DP

Tim Maloney · Answer

Great scores! Two options: "Heloc" the existing equity (even on a rental) to purchase the new. Option 2 - Buy a property needing rehab at 90-95% LTC. I'm unaware of 100% on any DSCR products - a hard money lender might but forget a rate in the 6's. Good luck!!!

funding my next deal??

funding my next deal??

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