Can I Take Money Out Of One Property To Put Toward Another Property?
I am seriously considering the purchase of my first multi-family building. The numbers are very good. After all expenses, included an estimated mortgage payment, the net yearly income will be $23K. I’m friends with several seasoned investors that have reviewed the property and the numbers and they have come to the conclusion that this property would be a good buy.
I will need to put down about $80K in cash to cover the 20% down payment, closing cost, etc, which is not a problem. I have a goal of purchasing a second property in about 1 year. After putting down $80K on my first purchase I will not have the cash to put down on a second property later.
Here is my question… One year from now when I’m looking to purchase my second property is it likely that a lender will allow me to take an out an equity loan of the first property as a down payment toward a second property?
Thanks in advance for your help.
Jeff
if you keep your credit rating is good and you show a profit in the present m/f/b very likely....ggod luck....kenmax
1-4 units you can take out 100% of the value on a second or a HELOC.
5+ units and it's more like 70-80% of the total value.
You might have to learn how to do creative deals after this one!