Older Investor needing help getting a Second property

[Robert Stephenson]

Hello,

Am an older investor seeking help. I own a 2bed/1 bath property in the Fort Worth Tx area. We I purchased the property, the previous owners updated the plumbing, adding HAVC and updated the electrical. It has rented well over the years. Currently, I have about $20K left on mortgage and estimate value is $175K. This is the only property that I own (other than my homestead). Am wanting to purchase another rental property but down have the funds other than the equity in the current rental. Are they wants to leverage the current property that I have to purchase another. Right now the rental has a cash flow of $250 per month. The rental should be paid off in about 3 years. Thank you in advance.

[Ko Kashiwagi]

Hi Robert,

Given you are looking to buy another rental (long term), a cash out refinance on the existing property would be a good play here. The DSCR loan would allow you to qualify based on the rent you are collecting and get up to 75% of the value (175 x 0.75 = 131.25k, minus 20k payoff and closing costs.

You could get a line of credit or a bridge loan against it to borrow money, but it would be higher interest.