I say rent it out first because I wouldn't borrow money against a negative cash flowing property.

However there is no limit when getting a mortgage for a primary residenceStraight from the Fannie Mae selling guide:Limits on the Number of Financed PropertiesIf the mortgage being delivered to Fannie Mae is secured by the borrower’s principal residence, there are no limitations on the number of properties that the borrower can currently be financing.

Thus far, it looks like most hard money lenders are charging between 4 and 10 points...wondering if others have had any luck in getting lower points...If points are non=negotiable, I'd likely borrow the minimum and use my cash on hand to keep financing costs in check.Other items to note include we have excellent credit and have a large amount of equity in our home of 10+ years.

I would appreciate all guidance and assistance that anyone can provide.

Heh... just had another thought... that if the contractor was this cheap to short-cut fill, the slab is probably really thin too, assisting in the breakage.

I am not borrowable yet, not long enough track record of rental income for FNMA.

I will borrow 100% as I will cash out a free and clear property on a 30yr at 4.75% fixed.

If you feel overwhelmed, remember, you should be profitable enough to have a Virtual Assistant do all this bookwork stuff.

Many lenders, including myself are not going to even try to distinguish between residential homestead and residential investment property - we are just going to stick with commercial property where the borrower can't later move in and have his attorney claim we made a non conforming consumer loan.Casualty of excessive Government interference in the market.

Thanks again for the assistance.