inherited a house

[Jeff Whitener]

Hey everybody,
So my brother and I inherited my grandmothers house about a year ago and now are renting it out. The house is paid in full, so everything after taxes and insurance is cash flow, which is great. I however, don't know where to go from here. I've become very interested in long term holds now after getting this property, but dont know if the best move is to get a HELOC, equity loan or mortgage on the house to buy another investment property. I live in NYC and the property is in upper state SC. I will be moving to the SC area in about 3 years. I want to buy more properties in SC. Any thoughts on the best option to take advantage of this oppurtunity

[Jon Holdman]

Originally posted by Ron Climer:

Do not encumber your grandmother's house with a mortgage.

Its not grandma's house anymore. Its theirs.

I would say don't encumber it unless your brother is willing to be on the loan, too, and the two of you are going into the landlord business as partners.

But think about that carefully. Business and family don't always mix.