Need advice about financing

[Amul Sutaria]

Hi BP'ers!

So I am looking at properties in the 70-90K range (in PA) that I want to buy and hold. Problem is, the family member that told me they would let me use their HELOC no longer wants to help.

OK, fine.  Time to get creative...

I have a primary residence that's worth about 450,000 (projected appraisal value) and I owe 327,000 on this property (mortgage).  

I spoke to a mortgage rep with the lender who i have a mortgage with, who told me if i cash out refinance on my primary residence, then i could pull out 22-26K.   I could use this for a down payment.    

Would this be a good way to go?   What other options do I have?  The rep told me they don't do HELOCs.  

Another concern is that if i cash out refinance, wouldn't that make my mortgage payments go up? I'm already stretched pretty thin over there...

Some guidance would be appreciated! 

CC: @David Ribardo 

[Alex Deacon]

@Amul Sutaria I dont like the idea of you being stretched thin already. Tread lightly. With that being said I would use the equity in your home for the down payment on your next investment. here in the Pittsburgh market you can get a pretty nice investment for 100k and with your equity from your house you will be able to pull that off. I dont know the market you are considering but anything around 100k will work with the parameters you have mentioned above.