Renting Out My Personal Property

[Murray Reginald]

Hi BP,

I am considering renting out my personal property to purchase another property and using some of my equity in my personal property to use as a down payment to purchase another property however, my Lender does not allow (FlagStar Bank) me to pull equity out of my property do to Texas laws, I was told I can find another lender to get the equity but the rates are 8.99 - 15.99% for loan repayment, I am looking for a lender that allows a higher % of the equity, my credit is good (815) so I'm sure I would be at the lower % however, is this typical for the equity loan to be that expensive? Is this a good strategy to use? I currently have about 30K cash as a down payment but did not want to exhaust all of my cash, I also have money in my 401K that I could roll over to an SDIRA as well, please let me know your thoughts.