Looking for 2nd investment property. WWYD?

[Joe Branco]

The first home I purchased was a duplex about 12 years ago. The plan was to live there for a few years and then move when our family grew and hold onto the duplex, which is what we did.  With our growing family and careers, the part of the plan we didn't act on, was acquiring a new investment property every few years.

Currently the duplex is cash flowing about $1200 per month and it has approx $225k in equity.  Current rate is 4.75%. I've been looking at cash-out refi options to put that equity towards purchasing more investment property(ies).  Advice here would be appreciated in what refi products I should consider.

My gut says the safe move is sticking with long term rentals in my local market (South Jersey, just outside of Philly) which I am familiar with, but I also have been considering purchasing a vacation home in the Outer Banks and use it as a short term rental when we aren't there, which would be most of the year.  While I'm familiar with LTRs, I have no experience with STRs and acquiring a loan for one. I'm concerned there might be rules from the lender that could stifle our future growth.

[Russell Brazil]

Quote from @Joe Branco:

The first home I purchased was a duplex about 12 years ago. The plan was to live there for a few years and then move when our family grew and hold onto the duplex, which is what we did.  With our growing family and careers, the part of the plan we didn't act on, was acquiring a new investment property every few years.

Currently the duplex is cash flowing about $1200 per month and it has approx $225k in equity.  Current rate is 4.75%. I've been looking at cash-out refi options to put that equity towards purchasing more investment property(ies).  Advice here would be appreciated in what refi products I should consider.

My gut says the safe move is sticking with long term rentals in my local market (South Jersey, just outside of Philly) which I am familiar with, but I also have been considering purchasing a vacation home in the Outer Banks and use it as a short term rental when we aren't there, which would be most of the year.  While I'm familiar with LTRs, I have no experience with STRs and acquiring a loan for one. I'm concerned there might be rules from the lender that could stifle our future growth.

 Do a heloc instead of cash out refi, that way you'll keep your rate on the existing loan