Is it better to mortgage one property or several? I paid cash.

[Doug DeVore]

Hello all - first time poster.  Been lurking for a bit and have even been to a meetup.

I have a property with $400k-$500k in equity and have paid cash for another property that I rehabbed and rented.  I was planning on pulling a mortgage on that property to get my cash back ($100k).  However, a property next to me (with more acreage) just came up for sale and I would like to buy it ($100k).  Im trying to figure out the best way to buy it while keeping me in a good position.  We would like to buy a house and move to Tennessee in the next month and I am worried about having all these different mortgages will make me look to a new lender (they are commercial).  My local lender has no problem giving me cash as we have a relationship however, he will not loan anything out of state.

I have the cash to buy the property outright, but then I will be tapped out.  

Here is my question- Is it better to pull $200k out of the property with $400k-$500k in equity or only pull $100k out of it and another $100k out of the other house I paid cash for?

Again, I want to be in a "slam dunk" position to buy a house for my family this month.

Thanks, 

Doug

[Costin I.]

@Doug DeVore Get a line of credit (HELOC from a residential loan officer/banl if the 400K property is in your name, or asset based line of credit or portfolio LOC from a commercial loan officer if not) and then you'll in a position to pull the trigger when you need on what you need and repeat (vs. a loan that you can use only once, pay interest on the balance regardless if you use part or all the money or not, with interest amortized vs daily balance, etc.). Then you can refinance the acquired property into long term, repay the LOC and reuse.