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Updated almost 8 years ago,
Which existing property should I use to finance my next deal?
Hi, my name is LaShonda. I have just joined BP after watching several podcasts. I have a question about how to go about financing my next deal. I currently own two rental properties in addition to the home I live in. I would like to use the existing rental properties to finance my next deal. Which property should I use or what suggestion do you have to create financing for my next deal? The deatails are below:
Rental A - has no mortgage and brings in $1,200/month and the property is worth over $200k
Rental B- has a mortgage of $600/month and the property is also worth over $200k
So the questions are: Do I use the property without a mortgage and get cash out of it to finance the next deal? Or Do I use the property with a mortgage and refinance it to use the equity as cash to finance the next deal? Just not sure is it worth putting a note on a property without a mortgage to get money rather than using the property with a mortgage and maybe not getting as much money to finance the next deal.
Thanks for your help in advance.