New Mortgage vs Home Equity Loan

[Justine Lee]

Hi! I am new to real estate investing and own a co-op in Brooklyn, New York. I am currently saving to buy a second property. I'm wondering if it makes sense to finance this second property with a new mortgage or a home equity loan. From what I understand, home equity loans are supposed to have lower interest rates, but I'm not finding that to be true. Nonetheless, leveraging the equity in my current property (which doesn't have a mortgage) will allow me to buy a property sooner than later. Although that comes with the risk of potentially losing both properties if things go wrong. I love the BRRR method, but want to make sure Any risk I take is highly calculated. Any advice or considerations would be greatly appreciated!!!

[Bin Chen]

You can try to get a home equity line of credit. Which is similar to a home equity loan but you can take out of it when you want and also you can make interest only payments if something bad happens.