Got a new house,should I sell or rent second home? ,It’s paid off

[Jay Pina]

I was dead set on starting to invest in real estate since I moved and have one house paid off but couldn’t get a loan against this house since COVID started.. now i don’t know if I should just sell it to get a 2.7 rate at 15 years for my new house or just wait till this COVID situation ends.. thx guys .. help is much appreciated 

[Will Fraser]

Hi @Jay Pina, welcome to the BiggerPockets forums!

I would push more broadly to find a lender that will loan against the house - either by a cash-out refinance or a HELOC.

Personally I’d definitely want to take advantage of the current rates (but I’d also definitely get a 30-year mortgage instead of a 15-year since I’m viewing fixed-rate mortgages as an inflation hedge).

I'd say refi or HELOC on your current home and rent it out while you take some of the liberated cash and put 3.5-20% down on your new home.