Renovated my primary residence -- How to finance a rental with it

[Dan Sabo]

I purchased my first home a year ago, and just completed the renovations. Not only was the original purchase a good deal, we have rehabbed the entire house. Since most of my cash is sunk into the reno, how can I use the increased home value to purchase my first rental?

Original purchase:

• Purchase price = $122,000
• Down payment = 20% (24,400)
• Original Mortgage amount = $97,600
• Current Loan amount = $95,100
• Original Appraisal = $130,000
  
  

Renovation

• Cash Spent = $26,500
• Rehab the entire house (4 BR, 1.5 B, exterior, etc.)

If I were to re-appraise, I believe the minimum amount would be $175,000.

I want to purchase my first rental property, and am wondering how best to utilize my current equity and home value increase to fund this new property.

Many Thanks!

D.S.