New loan or home equity loan/refinance
I have my primary home and one rental property. I have 100k equity in primary and 200k equity in rental house. I would like to buy another house before rates go up, probably live in it and turn my current house into another rental.
Is there more benefit to getting a new loan for this third house, or tapping somehow into the equity of the rental house?
(I would not want to do heloc because of the adjustable rate.)
The rental house is about breaking even or even taking a loss with many repairs the last couple years, but I don't mind because it offsets my primary business (online business) for taxes and is building a lot of equity because it was a 15 year loan, and now appreciation in inflationary times. (It was the first house I bought and an accidental rental house.)
My house now would cash flow about 500 a month.