Ready to invest, whats the best way to capitalize on my situation

[James Whitehead]

Im ready to make the plunge!

First post, apologies if I ramble...

Just came home after a year in the middle east trying to get a head a bit, after tax season we have a decent little egg in the bank, in addition to that the home we live in has a bit over 100k in equity we can take advantage of. 

So my question is really this, should I purchase a second home and rent out the one we own so that I can do a cash out refinance? our mortgage is 1k and rent in our area is avg, 1600 a month. We have been researching and heavily interested in purchasing a STR in the Smokies. Or should I consider a HELOC on the equity we have and not purchase a 2nd home.

Another question I have as I am about to go start talking to banks and loan officers and see who is interested in my business, what questions should I ask loan officers with these goals in mind?

I have been researching, listening to hours and hours of the podcast, as well as reading books from bigger pockets, im hoping that through the forums I can meet other like minded people and maybe even find a mentor that understands my goals.

For everyone that takes the time to read this thank you and I look forward to hearing your responses! 

[Nick Shri]

Quote from @James Whitehead:

Im ready to make the plunge!

First post, apologies if I ramble...

Just came home after a year in the middle east trying to get a head a bit, after tax season we have a decent little egg in the bank, in addition to that the home we live in has a bit over 100k in equity we can take advantage of. 

So my question is really this, should I purchase a second home and rent out the one we own so that I can do a cash out refinance? our mortgage is 1k and rent in our area is avg, 1600 a month. We have been researching and heavily interested in purchasing a STR in the Smokies. Or should I consider a HELOC on the equity we have and not purchase a 2nd home.

Another question I have as I am about to go start talking to banks and loan officers and see who is interested in my business, what questions should I ask loan officers with these goals in mind?

I have been researching, listening to hours and hours of the podcast, as well as reading books from bigger pockets, im hoping that through the forums I can meet other like minded people and maybe even find a mentor that understands my goals.

For everyone that takes the time to read this thank you and I look forward to hearing your responses! 

You don't need to purchase 2nd home to cash-out refi, you can do it while you are living in the current home. You plan to take the cash and buy a STR in the Smokies? I am not an Oracle who could see/predict future, but just keep in mind, economy is slowing, news of less vacay spending is all day everyday (you can discount it as noise as well or take it FWIW). Now, if you really decide to go ahead and buy a vacay STR, my recommendation is to Cash-out refi your primary. You will have fixed interest rate. With Heloc you end up with variable (sure you will have more cash to play with for first 10 years but that also comes with the variable interest risk). I see CO refi little less risky.

Definitely search what questions to ask banks or loan officers here in the forum, there even podcasts on those questions > its discussed plenty of times. Connect with lenders who lend for STRs in the smokies specifically. Good luck...