Bill, get a Home Equity Line of Credit (HELOC) from your local bank. Banks usually don’t charge much or any closing costs. It will a line of credit that is secured by a 2nd mortgage on your home. You have plenty of equity. You will get a check book with the equity line, so you can pay “cash” for the rental. By offering “cash” you can try and get a better deal on the property. After you rehab (if needed) you can refinance the mortgage into permanent financing.
Re-fi to get additional cash reserves? - Posted by Bill-NV
Posted by Bill-NV on December 05, 2002 at 16:05:41:
This is a newbie question - I owe only $148k on our residence which is worth ~$350k. I am starting a search to purchase 2 rentals (~$150k each), but only have ~$25k cash to invest.
Would you recommend doing a refinance on my home to get cash to invest? Do lenders care where the cash out goes? How would this impact my ability to get financing on the rentals? Would it make more sense to try to get larger loans on the rentals?
Credit score - where do I find this number? I don’t recall seeing it on previous reports. I do have a high income (6 figure + bonus) and am confident my credit rating is very good.