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investment question

Posted on: 09th May, 2007 09:06 am
hi all,

from an investment perspective, lets say i have a rental home for $10,000. if I had $10,000 in the bank, I would pay for the house cash.

Now if I found another rental home which I want to finance, can i take $8000 out of the first home, get a mortgage for the first home and then put $2000 out of that towards the second home?

what are the adv and dis of doing this from a loan perspective? rates? terms? etc...

thanks
"Now if I found another rental home which I want to finance, can i take $8000 out of the first home, get a mortgage for the first home and then put $2000 out of that towards the second home? "

Can you explain a bit more about what you mean by taking out $8000 from the first home?
Posted on: 09th May, 2007 01:16 pm
Hi Xmljar,

Welcome to the forums.

You mean you'll be paying off the mortgage on the rental home and get clear title to the property. Then you will be buying another house by taking out a mortgage against the rental home. Out of the loan amount, you're planning to take out $2000 towards the purchase of the second home. Ok, I get this now. Yeh, you can do it, this is quite possible.

Take Care
Posted on: 09th May, 2007 11:01 pm
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