Refinancing Primary Residence or Heloc or ??

[Sharita S.]

Hello, I would love some advice on how to proceed.  We would like to purchase another rental, and don't know the best avenue for financing the purchase.  Current situation

Prop 1SF  No mortgage.   Value 50k  rented for 700

Prop 2 DP No Mortgage.  Value 105k rented for 1400

Primary  11 years left on a 20  apr 5.375   400k+ in equity

I am just really unsure of which direction to take. Sharita

[Andrew Postell]

@Sharita S. if you are looking to purchase more flips then do consider a cash out loan on the investment properties (if you were to flip I would suggest a different course).  You can have the bank you trust run some numbers to see what your payments will be in theory and run it against your rental income to make sure your properties cash flow to your liking.  It seems that you were paying your primary home off quickly for a reason?  You are correct that you can get a better loan but if you still have that reason in front of you then don't take cash out of that property.  Instead compare the numbers on a 10 year mortgage to see if it saves you enough on interest to justify the closing costs.  If you have any other questions then please ask away and if you think this post is helpful then please consider voting for it.  Thanks!