Use Equity to Buy Property

[Michael McCollough]

I have zero mortgage on my current home. I have an opportunity to buy another house and assume a 3.375% FHA loan. I'd need to borrow about 50% of the value of my current home to fund the remainder of the price of the new home, and would retain the current home as a rental. This can look risky to a bank for a first time investment property, but I think it's a deal I need to make to start my journey investing. I've got a tenant ready to sign a 2-year lease. Is private capital a recommended route vs conventional borrowing?