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Updated almost 5 years ago, 02/25/2020
How do I strategically finance this house hack?
I am currently analyzing a potential house hack on a historic home. The property has 2 apartments that bring in $1200 /mo. total. I have $100k+ in equity in my current primary residence (value aro. $325k) and I want to use that equity to buy the house hack at around $475k - 500k. Then I will Airbnb my original home ($30k - 50k revenue potential).
My concern is I am unsure of my strategy for financing.
I am thinking I will cash-out refi my current residence, then use that as a down payment on the new property. I want to hold onto some of the cash for prepping/furnishing the Airbnb and for reserves (probably aro. $25k).
Will I run into issues if I cash-out refi my home and then try to get a loan immediately after to move into this property? What do I need to disclose to lenders, etc.?
Does anyone have any other creative ideas on how to do this deal? And any words of caution? Thanks!
-John Windsor
P.S. This is my first post, but I hope to be a regular contributor as I continue to learn and grow my investing abilities.