Buying Property 1 And Using Equity For Property 2? (refined Question)
Ok, I had asked a similar question under bird dog last week,but I think I phrased it wrong or ? Anyway, on to my question.
I want to buy one property and rent out. (dont' we all, 
). Anyway I want to use to equity to buy house #2 to also rent out.
What I wanted to do was cash out at time of purchase of property #1 (ie: sale price is $150K and its worth $180K, so I get it appraised at 180k and cash out $30K - assuming I will cover mortgage pmt with rental). WHAT is the correct way of doing it, so I have $ for next property?
And how easy will it be to get a second mortgage with one already? Do you use property 1's rental as income?
thanks
Interesting proposition on the two properties. What is your LTV on the first ? What are your scores? Can you come up with stated and 1 year bank statements? Assuming both properties are NOO, (Not Owner Occupied), the best thing would be to refi to cash out, fill out a prequal and see what's out there in the lending world. IE: rates terms, etc.
Search the forums for the keywords "Cross Collateralization." You should be able to find an answer to your question.
Another thought. You can try getting a HELOC on your 1st investment property if there are any NOO HELOCs with high LTVs available and use it to purchase your subsequent property. And so on and so forth.