Refinancing inherited home in order to invest in property

[Alex Platt]

Currently I own parents house which I inherited though their death. The last time the home was appraised the value was 155k. My partner and I want to purchase rental property. Our thoughts are to refinance the home in order to do this. We are unsure how this works. Please all feedback is welcomed. 

[Tom S.]

@Alex Platt  Welcome to BP Alex!  You didn't mention if you occupy that inherited house or not, or if there's an existing mortgage, which will determine how much money you can pull out.  Call around to banks in your area. 

If you get a loan for 75% of the value of the home: $155k * 75% = $116k for you to purchase more properties (they'll do another appraisal unless it was really recent). Or use a HELOC which may give you more flexibility to draw the money as needed (a credit line).

All of the above subject to income, credit, etc.

Hope that helps!

- Tom