Best loan option with a foreclosure

[Jeremy Brown]

So, with a foreclosure 6 years ago, hence still on credit, what are the best options for getting equity out of a rental house that currently has no mortgage?

Assume high credit score (despite the old foreclosure), high W2 income, 2+ years rental income on the property in question, a primary residence FHA loan that's about 50% LTV, and very little other debt.

Is there a good way to get at that equity to finance another rental or to use as capital for flipping? I know anything's possible, but the more cash out the better. But a low interest rate is, of course, important to keeping cashflow-positive, especially around here where purchase prices are high.

[David Dye]

Hey @Jeremy Brown,

The requirement for a full foreclosure is 7 years without extenuating circumstances for a conventional loan (you can't use FHA on the rental, unfortunately).

If it was a pre-foreclosure, the waiting period is only 2 years.