All Forum Posts by: Ryan D.

Wow thanks so much Andrew. Your reply nailed it. It was exactly the type of information I was looking for. My rate for my rental mortgage is 4.25% and I'm 7 years into the mortgage with a $1034/mo payment. I also thought like you in that the rate wasn't high enough to justify a refi and paying all those fees. I didn't know about the 6mo of cash reserves so that's interesting. It is amazing how I have about $80k in equity but due to all the lender rules/requirements/fees it seems like I'm barely getting anything.

I'm trying to learn about rental property equity financing. But all the articles I find are about using equity in your HOME to buy a second property or rental property. But what about using home equity in your rental property to buy a new primary home?

Since 2015 I've had a rental unit in Virginia while I lived in CA. I sold my house in CA and am moving back to VA. I don't want to live in my condo so I'm going to buy a new home. I am looking into all my options to include possibly using the equity in my condo to assist in buying the home I want. I know the difference between a cash out refinance vs HEL vs HELOC. But I don't know the particulars and advantages/disadvantages for those options in regards to using it on a rental property, especially during this time with the pandemic and all the new lender requirements. Any insight would be greatly appreciated!

If you need numbers, my mortgage balance for my rental property is $143k and the estimated value is $220k.