Can I Pull Money From A Rental

I now own a duplex and a condo as a rental both have 20% down on them. I bought the duplex with 20% down with a home equity line from my house. I want to buy more (got the fever) but I'm not sure if I can pull equity out of rental's. The condo is worth 115,000 I owe 78,000, the duplex is worth 255,000 I owe 190,000. Please advise. I would also ike to ball park % rates if I can do this.

Comments(4)

  • InActive_Account22nd May, 2004

    Is it possible? Perhaps with more info I could tell you. Need to know your credit score and DTI.

    Rate? Once again need credit score and DTI.

    But the higer the LTV the higher the rate.

  • mcq22nd May, 2004

    my fair issac is 770, my income is 130,000 my rent on the duplex is 1800 a month my loan amount with impound account is 1300, my condo loan is 575 with impound and my rent is 750, my home is 1400 a month i have only one other debt a car payment of 450. I hope that helps.

  • studlee22nd May, 2004

    Sure you can. It is very common to use equity in your existing rentals to buy new ones. I have done it several times. In one instance they lent me the full amount and just put a lien on my rental for 20%. Another instance they gave me a loan for the 20% against my rentals. I would opt for the first one though. Hope this helps and good luck! 8-)

  • InActive_Account23rd May, 2004

    With those numbers you should not have a problem. Shop around at your local banks and present your self as a profesional. Try to talk to the commercial side of the bank.

    But lenders are only going to count 75% of your rental income. This is to cover vacancies and repairs.

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