Hi @Ashton Sharp. From primary residences you can typically do a cash-out refinance or a HELOC. You have almost no equity. Even the more risky lenders typically cap off at 90% LTV. You are already beyond that.

I believe it would have to currently appraise for ~145,000. You can get up to 90% equity out on personal residences. This will increase your interest rate into the 4's (Maybe even low 5's) though. You also have to factor closing cost you will have to pay out of pocket. You'll probably have to pay for an appraisal up front. The survey and loan fees will come out of the cash back at closing. So you have about 10,400 in equity but you'd probably only get somewhere between 6,000 and 7,000 most likely. If you're having trouble saving, I'm sure a higher mortgage note isn't going to help you any and you'll also be losing 28 - 38% of your equity to services and fees right off the bat. I would try and pay down personal debt so you can save a bigger portion of your income.

When your equity reaches MORE than 40%, ask again. Typically, you won't be able to get more than an 80% HELOC, which in theory should get you the needed 20% for another deposit. My 2c.

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Updated over 8 years ago on 10/26/2016. Most recent reply

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Ashton SharpPoster

Rental Property Investor
Bakersfield, CA

Innovative Strategies

Property leverage?

Ashton SharpPoster

Rental Property Investor
Bakersfield, CA

Posted October 25, 2016 08:42

Hello BP community! I'm relatively new to the investing world and I'm wondering if there is any way to leverage my home mortgage to get another property, I have about 8% equity on a 130,000 property. I don't have anything picked out, but I'm not in a position to save very much monthly.

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