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Updated over 9 years ago,

Account Closed
  • Investor
  • Cincinnati, OH
1
Votes |
7
Posts

Should I Pull out Equity Now? Or wait and go FHA on next Property?

Account Closed
  • Investor
  • Cincinnati, OH
Posted

Question for the BP world.

I am actively looking for my second property to get into and have found a 4-family that would work out very nicely. I'm currently planning to go owner occupied on FHA 3.5% down.

I've been in my first duplex for over a year now (as owner occupied 30 year conventional financing) and believe I've created a significant amount of equity in the home since I've been here.

My question is, should I try and pull out the equity now since I'm still owner occupied and use it for the next couple of rental property purchases, or should I move out of the place now, and go with the FHA loan on the next 4-family?

The reason I'm thinking about pulling out the equity now instead of later, is simply because I'm owner occupied. How big of a difference will it make 2-5 years down the road if I wait to pull out the equity? If I want to pull out the equity, are there conditions that I will have to stay in the current property for 6-12 months? If I have the capital for an FHA loan now, does it make more sense to go FHA on property #2 and get out of property #1, cash flow on property #1 and #2 while I'm owner occupied in property #2, and then use that cash flow for another down payment? Or would I be able to use more leverage by refinancing property #1 now since I'm owner occupied?

THANKS!

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