Financing off appraised value

[Cody Proctor]

Hey, so I just bought a fourplex in Texas for a little over 250k, appraisal is at 359k. I figured there would be a way to use the equity I already have in the property for my down payment. Anyone have experience with this or any recommendations? I’m also looking into doing the USDA rural loan, anyone have experience there either? Thanks!

[Tracy Streich]

Typically no.   The bank wants you to have some skin in the game on an investment property.   They will usually do a % of the appraisal or cost which ever is less.   In your case cost.   The bank will then want you to put some money down.   You can always get a line of credit on the equity after you close and use that for repairs or to fund another deal!  Good luck