Facts:
Rental 1: House Worth --> $1.2MM. Loan amount remaining --> $650K. Equity. --> $550K. Interest rate --> 3.2%
Rental 2: House Worth --> $550K. Loan amount remaining --> $390K. Equity. --> $160K. Interest rate --> 6.3%
Primary Residence House Worth --> $1.5MM. Loan amount remaining --> $1.1MM. Equity --> $400K. Interest rate 4.9%
We are two people who in a weird way, fumbled our way into becoming rental property owners. Rental 1 was our primary until we moved states a couple of years ago and decided to keep the property as it was our first home. We have a 3.2% rate and the house cash flows about $1,000 per month on top of building some solid equity. Rental 2 was bought a year later and is about even on cash flow (equity play over time).
My question is simple ... as a COMPLETE beginner, what are my options to tap into and use the equity from any of the above properties to finance incremental rental properties instead of using W2 capital? I appreciate any help. I tried to include all the basic info but if I omitted anything that will help you share even an ounce of wisdom, please do let me know.
