Buying a 2 family rental property using home equity.

[Seth Nanton]

I have a home worth $350k that's completely paid off. A neighbor is selling their two family which has two 1,100  sq ft apts (1 br). Upside, backyard, deck, access to mass transit, restaurants, beach. Downside, needs new porch, flight of stairs to get to the porch, and needs new electrical (still uses knob and tube). Selling for 299k. What kind of strategy would you employ here hypothetically? I'm totally new to this but interested in learning. I've read the no to low money down book. But I'd love to hear from people "in the game".

[Josh Mitchell]

@Seth Nanton you could do a lot of things. Depending on how well you know your neighbor, you could work out an owner financing arrangement, or negotiate credits for the work that needs done with them. Since your home is completely paid off, you could do a cash out refinance on it, and put money down on purchase of new home, or take a HELOC out against your home to do the same. Depends on what your goals are..... Don't have numbers so don't know if this is a good deal or not, but those are some of the options you could use to purchase the property. Good luck!