Refinance + Buying an Investment Property

[Katherine Nguyen]

Hi all!

I’ve been a long time lurker and I have to say, I’ve really enjoyed the community here!

Anyway, I’m interested in buying an investment home out of state. I have a few questions regarding financing that I’m a tad confused by and could really use your knowledge and help!

So, if I want to refinance my primary residence and take a cash out to pay for the investment home, should I start the refinancing process first to secure the cash before looking for an investment home or the reverse?

Is it wise to take out enough equity from my current home to pay for 100% of the investment home’s price or should I put 25% down of my own cash and the rest is paid from the refinancing?

What’re your thoughts? If you have an alternative approach, I’d love to hear it! Thank you.