Financing Options

I own a condo right now and have some equity in it and going to try and buy another one. I just wanted any investors opinion on whether I am too leveraged with a possible new purchase.

Condo I own: AV $245000 loan balance : $159000
loan is in the second year of a 7/1 arm rate at 5.375
I eat about 400 a month on this one bc of HOA fee and break for good renters.

New Condo: Purchase Price $235,000- great area and i expect it to appreciate 10-15 percent annually for next 5 years. My goal is to own it for less than five and just rent. I would be eating about $250 a month bc of a HOA fee.

My plan is to have somone cosign with me to have the DTI but I was going to refinance, pull out some equity for downpayment of new condo. However, its pretty tight bc I have 10k balance on HELOC on the condo. I figure I keep the 20% on the existing condo and go 10% on the new one. Any thoughts by the community would be appreciated.

You could work this. Especially if you keep the timing between the two closings, loan and new purchase, kind of close, you might be able to do both transactions as primary residences… :wink:

This way you can avoid hits for doing the other property as an investment.

Also, anticipate a slightly higher payment on the first loan, because 7/1 rates are par at about 5.5-5.75 right now. They are pretty comparable with 30’s right now, in fact.

If you need any help with these in FL, feel free to contact me.