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Updated almost 18 years ago on . Most recent reply
Looking for ideas
Hi everyone. Im new to the forum but figured I'd throw a question out to everyone to see if anyone had any ideas for me. Here's my situation...
I currently own a condo that I have lived in for 3+ years and I owe $100k on it. I just had it appraised for 145k. I'm thinking about buying a triplex down the street from me. The asking price on that property is 380k. If I did my math correctly. I would need about 75k to be able to put 20% down on that property and my mortgage payments would be about $1900/month. I'd like to live in 1 of the 3 units, while renting the other 2 out. Im reasonably sure I can rent each unit at 900-1000 per month, but I still need to confirm this. Renting those 2 units would cover my mortgage payment and I'd be able to live their free (relatively).
Now my question is this. The above scenario requires me to put down 75k as a downpayment. I don't have that much in cash right now. I have about 15k in cash reserves right now. However, I know I can get a good rate on a personal loan for 30k(I have excellent credit), and then I do have 40k in equity in my current residence. What is the best way to get at this money? Sell the home outright and use that cash, or do a HELOC or Refi on my home? I'm just looking for what my options are in getting to that 40k I have in my current home. I'll sell the place to get it, but it might be difficult to do that and put an offer in on the other place until I know I have my place sold. Thoughts?
Sorry for such a long first post, hope it makes sense.