All Forum Posts by: Dereck Palermo
Dereck Palermo has started 2 posts and replied 3 times.
Post: 2nd rental property finance options
- Posts 3
- Votes 0
The property that I currently have for rent was my first home that I
purchased with a USDA Rural development loan. I have a positive cash
flow of $400 per month for renting it out. The home is worth about
$190,00-$195,000 and I have $140,000 left to pay on the loan.
I'm currently looking at a duplex that is selling for $130,000 and both units are being rented out for $725. I'm thinking maybe improved it some and rent it out for $800-$850 per month after the current tenants move out.
Should I do a Cash out refinance to purchase my second rental property or is there any other good suggestions out there?
Originally posted by @Courtney King:
@Dereck Palermo I would chat with a lender to see what the best option would be. Correct me if I'm wrong, you'd use the cash from the refi as a downpayment on the next property right? I believe a lender will be able to guide you as there may be multiple options but I know that the refi may affect you if you are getting a new mortgage for the duplex that you're considering. I hope this is helpful.
Correct, would use the refinance for 2nd rental.
The property that I currently have for rent was my first home that I purchased with a USDA Rural development loan. I have a positive cash flow of $400 per month for renting it out. The home is worth about $190,00-$195,000 and I have $140,000 left to pay on the loan.
I'm currently looking at a duplex that is selling for $130,000 and both units are being rented out for $725. I'm thinking maybe improved it some and rent it out for $800-$850 per month after the current tenants move out.
Should I do a Cash out refinance to purchase my second rental property or is there any other good suggestions out there?