I have a duplex I have been renting for almost 10 years and want to use the equity in that property to use as a down payment on a storage facility.

Cash out should be used as a 12-24 month loan so that you can buy another property and pull cash out at the next 12th or 24th month mark.At that point you take a portion to pay off or down the first loan and use the rest as a down payment on the next REI.

Repayment options can be more flexible like in my case I do everything on accrual this really helps flippers when they dont have to make monthly payments.

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

You can sometimes purchase a property with zero down or a minimal down payment but a seller financing deal will not hold a note for 30 years as a bank would.

I would like to purchase another property so I looked into a heloc and a cash out refinance and it looks like I would qualify for about 75000 max which would be enough to put a down payment on another property and rehab it, but I still haven’t paid myself back from the original property rehab.

If you buy for $110k you can finance $88k if you come out of pocket for the $22k down payment plus closing costs. 

The Heloc can also pose as a debt obstacle since its an open end mortgage a.k.a credit card.a mortgage is also set up over 30 years so it offers a lower rate and payment. 

And, there should not be a minimum number of payments or minimum amount of interest.Here's a quick recap of what to look for in a hard money loan.

Usually the hardest part is coming up with the down payment.