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Updated about 1 year ago on . Most recent reply
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Cash Purchase Rental Property by Mortgaging Another Property
I'm exploring options to generate enough funds to purchase a $450k investment property but don't have the liquid cash. I have another rental property free and clear and considered securing the funds by taking a mortgage out on it. I'm not certain of my debt to income ratio at the moment, but if I try to mortgage out a property to purchase another, does the rental income I anticipate getting from the new purchase factor into the debt to income calculation? Or am I looking at this all wrong and would be better to just to find a hard money lender to finance this?
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You'll be able to access no income no doc investment property mortgages based on the rental income of the property . They're called DSCR loans . Can go to 80% of its value in some cases . Would do the DSCR cashout refinance from your existing property for the downpayment and do a DSCR purchase for the next property or the cashout may even be enough to buy it in cash . How much is the free and clear property worth ?
- Jacob Sherman
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- 267-516-0896