Getting Rental Refinanced Or Home Equity Line
hi, we have a rental with about 30,000 in equity and have had for a year now, we want to take the equity out to reduce some debt but more importantly to use on another investment. here is the catch, our scores are in the middle 500's and our rent barely pays the mort. payment so it shows cash flow loss :-( and i am a little worried about our debt to ratio does anyone have any reccomendation how we can get our equity???? and to add to our frustrations we have been offered a single family home for 70,000 and it is worth 120,000 but we don't hve the 20% down...we are missing out on this one.
thanks in advance!
ps. we also have to replace the furnace in the rental before winter comes again, so we have to come up with some money[ Edited by detrow on Date 05/24/2004 ]
you may want to refinance the property to pay off any outstanding bills, rehab the property and bring the value up, etc. Then once your credit is better you will be able to get an equity line of credit for the other properties you wish to purchase. Also personally, I would rehab the property up to a higher standard so that you can charge more so you can make ends meet.
If you choose not to do the above then you can cross collateralize the equity you have in the property, but with your credit score you will be paying higher interest and will not make as much money.
Good Luck,
Kyle
You might wholesale the SFR to somebody else for $100K, use the $30K (more or less) to clean up your credit and put the furnace in the rental.
thanks for your replies....the house has been updated minus the furnace and eventually the windows...what we are struggling with is getting our equity due to poor credit....but i think we could do alot for our credit if we could take out the equity to pay off credit cards etc....
the rental is the sfr so if i wholesale it i would not need to replace the furnace....to be honest at this point i would love to wholesale it at around 100,000.... any marketing advise
what is cross collateralize...how do you do that.
thanks again