Getting 4th 4 family financed.

[Jennifer McCurrach]

My husband and I live in a house (almost 4 years) on a 30 year mortgage. We have 2 four family buildings (purchased in '10 and '14), and we just entered a contract to buy a third 4 plex. We did 20% down on our primary residence, and 25% on all 3 rental buildings. This last purchase will eat up most of our cash reserves for the down payment. Just yesterday, I got an inside call about a building near one of ours that is going to sell, and I just cannot pass it up. It is also a 4 family. Now, for my question: How do I get the money for the down payment and have the reserves required for owning 4 properties? Can I do a HELOC on my primary? Do I dip into retirement? I've read conflicting info about the ability to borrow against IRA or 401k. Please help!

[Leland Barrow]

You can do a HELOC on a primary most commonly through whoever holds the first. You will not be able to use IRA or 401K if you are under any amount of time constraints. You can contact a local bank and talk to them about a portfolio loan. I am assuming you would need to do this quickly so a HELOC on your primary would probably be the quickest solution. Your 2010 property may have enough equity to cash out refi to payback your HELOC? Personally I am not a fan of mixing personal and business assets or finances. You have enough assets that your liability is significant enough to attract attention if something goes wrong. If you leverage your personal property for business purposes I would recommend only doing it for a very short amount of time. Bad things tend to choose the worst times to happen. If I was in your shoes I would look for a cash heavy partner so you do not use up your cash reserves or just pass on the deal.