Need Advice Please - HELOC on Rental or New Primary

[Mary White]

We're scheduled to close on a beautiful home for our family on November 15th. I'm also under contract on a nice cash flowing multi-family rental property. Our plan was to do a cash out refinance or HELOC of our current primary residence and use that for the down on the SFH, but the purchase happened way to fast (off market deal with 45 day close) and we need to use our savings for the down payment. Now, I need to find the money for the down on the 4-plex. My options are to sell my current primary and hope for a fast deal or to do a HELOC or refinance and rent it out. We have $150,000 in equity in the current primary, but I wasn't able to secure a HELOC before buying a new primary, so I don't know what to do. I could also do a HELOC on the new property, but I don't know if companies do HELOCs when you only have 20% in the property. I need $75,000 for the down on the 4-plex. Should I...

(A) Sell current primary, net about $130,000 and buy the 4-plex

(B) Rent out the current primary and do a HELOC or cash-out refinance

(C) Open a HELOC on the new primary and rent out the current primary

(D) Other Ideas, please

[Jaysen Medhurst]

What are the details on your primary, @Mary White? Rent, ARV, expenses? All too often I read forum posts of people thinking about renting out their primary residence, but the numbers just don't make sense.

Most likely the smartest thing to do is sell your current primary and redeploy the capital.