Pros/Cons of Getting a Mortgage on Paid Off Rental Property?

[Cody Copinger]

Hey there,

Just wanted to get some feedback on exactly what the title says. I'm 17 years old and own one rental property in the Baltimore area. I was looking into whether or not I should pull out all of the equity I have in the property (100%) and get a mortgage, and then put the money acquired from that property into 2-3 other rental properties.

My main issue is, because I'm not yet 18, I don't have a credit score and am not sure if I'd be able to do such a thing due to no real credit history and no huge source of income aside from my rental income. Any suggestions would be highly appreciated! 

Thanks!

[Cody Copinger]

@Ned Carey Thank you for the informative reply. I suppose this is a decision I'd certainly have to sleep on and decide what feels best for me. I really appreciate the info on DSCR, it gives me a greater idea of whether or not the property I am interested in will be a good investment that cash flows enough to pay the monthly payments and perhaps leave some net profit.

Thanks again!