Bringing back up this 3 year old topic. Got a question for you smart people on here. I have this same question out to my Mortgage person but want to see what you guys think.
I currently own two homes and I want to buy a 3rd.
One property I own is a condo in a very popular area of North Atlanta. I owe $154,000 on it and my interest rate is 2.7%. I charge $1,700 a months rent. With HOA and mortgage, it totals about $1,500 that I'm paying out. Owned this for 5 years.
The other property I own is a house on one acre and the one I live in and I owe $355,000 on it - and have a total HELOC of $48,000. Interest rate I believe is 3.7%. HELOC is at 8%. My HELOC payback is currently around $375 a month for the next 10 years.
I want to keep both of these properties while buying a 3rd.
I am wanting to pull $50,000 HELOC from the condo. This is currently a rental property. I would use that $50,000 towards a down payment on a new house.
I would have another renter to come in and move into the house I currently live in.
Ideally I would like to refinance the house I live in which would put me on a new 40 year loan. It would decrease my mortgage about $800 a month but would make up for it with the new renter. I'm okay with putting me on a longer loan because I plan renting this house out for a very long time. So my mortgage would lower $800, giving me more cash/net at the end of each month from the renter. The rental market where I'm at will be strong and I will be able to increase rent pretty much each year.
Is my scenario possible? I would basically have one equity loan and one refinanced house.
Or if you know of a different way in which I can keep both of these properties while getting cash for a $50,000 down payment.