Hi, I have a couple of properties that I purchased last year and I wanted to know how of if I could receive funds based on my current properties in the form of 2nd Mortgage, improvement loan, line of credit, etc. I like to use that money to purchase another property. Also, let me know the pros and cons in doing this type of technique.
Thanks,
PR
Many people do a cash out refinance to tap into some of there equity for future investments. That is basically what I do all day. My cliental is primarily RE Investors with rental incomes. Your leveraging the equity for another investment. Use it to your advanatge!
Unless you get a HELOC on the properties…which you probably will not qualify for because of LTV issues you will have to pay closing costs twice. Once for the cash out refinance and again for the purchase of your new property. Theres a good chance that you would be better off just getting 100% financing (if absolutly necessary).