Cash-Out-Refi or Home Equity Loan Advice

[Bradley Chiakas]

I bought a 3 bedroom condo in Downtown Houston in 2013 with 10% down and a 15 yr mortgage. I put some extra cash into the mortgage and did some upgrades. I am slightly positive on cash flow, but now have 139k left on a property valued at 275k. I would like to pull 80k out along with 20k of my own and re-invest into new property.

I went full rental/passive income lifestyle last year. That means no earned income. I expect 149k of passive income this year. I'm not sure on a couple things:

1. Should I do a cash-out-refinance, or home equity loan? I have a 3% interest / 15 yr loan now.

2. How do I go about securing the cash-out/loan, and also the new property loan if I have no earned income?

3. I heard Tim Shiner speak and liked his approach of getting as many "doors" or cash producing assets as possible, while still maintaining a emergency fund. Anyone object to my suggested approach?

I have contacted my mortgage broker but have not yet heard back. Thanks all for your knowledge and opinions!

Bradley

[Harjeet Bhatti]

You have good interest rate. Did you try to reach out to local bank in your area and ask if they can get you line of credit on these homes? Otherwise cash out is the only option you have for these properties. I would keep the same mortgage and search little more on other banks.