Acquisition in Maine. Leverage question

[Burton Boone III]

My wife and I own four units and we’re making the jump to double digits. Do you take out a second mortgage on an Airbnb that you never wish to sell that’s almost paid off  or do you take out 100 grand against your primary residence.  

We are getting 250 grand against our multifamily. Cannot touch that one because it’s super low rate of 2%. 

Our Hard Money lender will cross collateralize at 10% down and the other 10% equities in our properties. 

The rate on our primary residence sucks already  so in the years to come, hopefully it’s cheaper. We own 2.2MM in RE and 1.1MM in notes. All of our properties are appreciating and doubling every 3-5 years. So it’s hard to let them go. 

I have 250 grand equity(80%) lake property with a $65,000 note. Bank came back and said we maxed out our DTI so they only give us 115 grand and not the whole 250g. I don't want to underutilize the equity on this property so I feel like taking out 100 grand on our Primary where the rates suck already and it will only cost me an extra 600 or 700 bucks a month.

I’m new to this app and using it so please be patient. 
Two family note 403 at 2% valued at 800. 250 heloc coming. Gross 6000 month

Lake cottage 1 note of at 65 5%. Valued at 375. gross 52k

Lake cottage 2 note of 165 at 3% gross 48k

Primary. Owe 560 7.5% valued at 825. 

Don’t wish to sell anything because the appreciation in our state and vicinity to Boston is wild and keeps going up. 

Proposed property were paying 60 grand to unit utilities are paid by landlord  I’m hoping in a year this will net me $6000 a month

Was using voice to text sorry if there’s any grammatical errors. 

[Drago Stanimirovic]

Hi Burton,

It sounds like you're in a great position with a strong portfolio. Given the situation, I would recommend taking the $100,000 from your primary residence. Since the interest rate is already high, adding to it won’t drastically change your overall costs and will free up the liquidity you need for the new investment without affecting the low-rate financing on your multifamily property.

Using the hard money loan to close on the new property could work well, especially if the property generates the $6,000/month you expect. Once stabilized, you can refinance out of the hard money loan into something more conventional. This allows you to keep your Airbnb equity intact for future opportunities while managing your DTI limitations.

If you need help navigating this further or finding the best financing options, feel free to reach out. Happy to assist! 

Best regards,

Drago

[Rich Davis]

Any decent lender should allow you to borrow against your airbnb, without disturbing the original 2% loan.

Example: I have a 6 unit that had ~$500K in equity. Just this year, I used that equity as down payments for multiple other buildings.