Hello Bigger Pockets!
I'm hoping to tap into the wealth of knowledge here on BP regarding a 4 unit building I purchased in 2020 with a 3.5% down FHA loan. Overall, the experience has been great and I've officially been bitten by the "Real Estate Bug." Now that I've lived here for a year, I want to buy another 4 unit property that is on the same block and I'm hoping you can show me the best way to use my current property to finance my second property.
After owning the quad for a year, I have ~$70K of equity in the property. The building I want to buy is ~$475K. I want to keep my current property. The new property will likely need some work to get the units to the level of my current property. There are currently tenants in the new property.
Should I do a cash out refinance, pull a line of credit, or wait until I have more equity? Which is the best option that minimizes the impact on cashflow on my current property?
Also, I want to quitclaim the existing property into an LLC. Should I wait until after I refinance or pull a credit line to quitclaim? If I quitclaim now, will this deter lenders?
I'm excited to read your comments. Thanks!
