Is this True?

[Chris Sukala]

Ok so I called my banker up and asked to get a cash out on our second property. We purchased it last year paid cash free and clear. I originally was told that I could not do anything for a year due to the fact I would only get 70% of what I paid for it. So I waited till this 1st which would be 1 year. I was told that no-one offers a cash out or equity line on investment properties. She told me that I could get 70% but it would have to be a loan on the property. Is this true?

I purchased the house for about 31k did a remod and hopefully looking at about 75-85k. I put about 25k into it. I know that equity is prime plus 1 so in the big picture a loan would be more beneficially. My idea is to get the equity and purchase another property. Have one pay for the other.

[Brent Coombs]

@Chris Sukala, you wrote: "She told me that I could get 70% but it would have to be a loan on the property. Is this true"?

Isn't that what "cash out" means? You borrow 70% of its value (to reinvest), meaning that you now only have 30% equity in that property, with Title being handed over until it's paid back. So, GOOD, right? Problem?...