Replacing Low Interest Bank Loan w/ Asset Based Loan to Pull Cash

[Jameson Sullivan]

Hello BP World.

The answer to my question today is going to be more oppinion base than anything, but I woul like to hear what people have to say.

I bought my primary residence as a project, knowing I would either sell it or rent it out but never intended it to be the house of my dreams. I probablly have 150k in equity in the home but cannot qualify for a bank loan since I am a new commercial broker and don't have enough income. I can however refinance the home with an asset based loan and pull about 75k out of it while having my payments land around 3/4 of what the rents would be. That 1/4 would be about $450. Of course the asset based loan, which does not have income requirement for me as an owner, will cost about 3% more in interest plus a couple points.

So, Of course this loan is expensive however, my other options are to wait two years, or sell it and get all the capital back but no longer hold the asset.

So my question is: What would you do?

Thanks all.

Best Regards,