Yes you can borrow equity to buy a Condo but it has to represent 20% down payment and you should be qualified to have 2 mortgages (net of rental income from one of the units if you plan to rent it out .) You should consider blending the 2 mortgages together if it makes financial sense to save on mortgage payment. You can then use the savings on the mortgage payments as a top up to pay the principal. This will cut back your amortization period so you become debt free faster.

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My cost of the rental house after renovation is $100k. i can rent it for $850/mo (roughly 8% return after property taxes/ins.) or i can sell it for $150k (and pay around 25% income taxes) or i can take an equity loan for part of the value, get some income and buy the next rough diamond. ideas?

I would sell it. I don't think $850 per month is sufficient return on an investment of $100k. The one caveat might be if you think the market is depressed and will come up substantially in value soon. That is, if your $150k house is worth $225k in a couple years, etc. Good luck.

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I need the money to pay off other debt and raise credit score. i've got bad credit but nice properties that i don't owe mortgages on. suggestions??

With bad credit, it is unlikely that you will find a traditional bank to give you a loan on these properties. You may have to find a hard money lender, expect to pay double digit interest rates. The best option is to fix your credit, then move forward.

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My sister and i recently inherited a rental property in pa from my dad who passed away last month. she lives in ga and i am local and will be the one taking care of the property and tenants, but we own the property 50/50. i would like to keep the rental and build a property portfolio off of it. since it is in both of our names, i was thinking we could set up an llc which we would be partners of, sell the house to the llc and then borrow against the equity in the property to buy another rental property and more down the road. there is no current mortgage but, i have heard that banks right now will not loan to an llc for a mortgage for various reasons. could the llc just essentially borrow against the equity, take out a home equity loan and use that as a down payment for a future property? she has given me power of attorney, but i'm assuming that if we do not form an llc, i could only borrow against half the equity for a future property. is that correct? any and all suggestions are appreciated! loanmaster: the rental property is completely paid for, so i have 50% equity and so does my sister. if we "sell" the property to an llc that we create, the llc would then own 100% equity. wouldn't the llc be able to borrow say 50% of the equity (heloc)to use for a downpayment and repairs to a future rental property? or would i still have to sign a personal gauranty, since the llc would be borrowing against its own equity? if the loan were to default, the bank would be able to get their 50% equity or whatever makes up the difference. correct or am i misconstruing things here?

Banks will lend to LLC and other type corporations the same as an individual. Since this is true the corporation must be able to prove that it is able to prove the ability to pay the debts it incurs as well as assets. Most corporations that are just beginning are unable to do this. Since banks know this they will still lend money to a corporation but you must sign on a personal guarantee of the mortgage loan. This is called a recourse loan.Failure of the corporation to pay it's debts then the lender will come after you for the payments. Once the corporation is established, can produce 2 years of federal income tax, the ability to pay it's debts and have more assets then the bank will lend the corporation money without you signing as a personal guarantee. When a bank allow the corporation to sign for loans and other debts on it's on this is called a non-recourse loan or debt. The lender will not be looking for you as a person to pay the debts of the corporation. You may transfer the property to the corporation,however, the mortgage loan will be your personal responsibility as long as the mortgage loan docs are singed by you and you act as the signer for the corporation. Since you would have transferred the property to corporation make sure all rent is made to the corporation and deposited in the banks corporate account. You must take care and build your corporation carefully, take care of the corporation finance and pay the debts as you would your own. You would also have to get the corporation a credit report. There are several type of business corporation, make sure you speak with several individuals such as a corporate attorney, CPA and others so as to make an intelligent decision as to which would be more beneficial to you and your overall goals. I hope this has been of some benefit to you, good luck. "FIGHT ON"

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Paid from a home equity loan on my current residence? i already borrowed the money for the rental property from my primary home.

You are going to have to make the workmen into "partners". When the work is done, you will sell the house and pay them 110% of their normal pay. Otherwise, no one is loaning for fixup money..

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I am buying a rental property for $50k. i will put 10k down so i need to borrow $40k i have 2 offers that will determine whether i will apply the mortgage interest on my schedule e for rental property or as an itemized deduction on my 1040. home equity loan against my primary house at 6.09% with $300 loan processing fee. 15 year note - 1st years interest payment will be $2452 - i think this interest would be an itemized deduction. mortgage for the investment property at 6.25% with 1 3/8 points. total fee is $2100 including points. 15 year note - ist years interest payment will be $2492 i think this would be an expense on my schedule e. i am at a 28% tax bracket and have no other mortgage on my primary house. to further complicate the picture i have $34000 in student loan debt and could roll this into my home equity loan. what would be best for my taxes? take the home equity loan or a mortgage on the new property? should i roll my student loans into the home equity loan?

mortgage. also, consider for future RE ventures; tax certificates or county annual RE foreclosure sales. lastly; think about becoming a hard money lender!!! [they want to obtain the prop, not have borrowers pay them back]

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Just wondering if i put a considerable down payment on a home and built more equity over a few years if it would be possible to take a home equity loan out to put a down payment on another home that would be used for investment purposes? a rental property/duple/apartment complex etc.... of course i realize that the home equity loan would need to be paid back but i was wondering if people out there do this on a regular basis? if not can anyone give me creative financing ideas when it comest to purchasing multiple homes for investment purposes. i understand a persons credit score tangible assets can be a determining factor but i have yet to build any considerable assets. i make close to $250k a year before taxes, would that alone be good enough for banks to finance me? p.s. - i live in the dallas tx area and i am looking at properties averaging around $100k as rental properties. just wondering if building up equity in homes would allow me to borrow to purchase.

That's how I have done, but on a much smaller scale than Donald Trump. If you have cash use that first, if you use an equity line you pay the interest. Investment property loans charge more interest. You want to try to maintain an 80% or less debt to value on all you propeties. If you go over you will have to pay more for the loans. Try to do this for your current residence too, in case you want to refi. Loans are getting cheaper, check with your bank. They may have a refi option that will allow you the cash you need at a better deal than an equity line. When you buy if you do multiple deals at once you credit won't reflect the other homes you are trying to purchase. This will make you look like a better risk to the bank. Make sure you don't bite off more than you can chew. Another bit of advice, don't buy a fixer upper and plan to improve it to gain value, not on your first endeavor anyway. Time is money, buy it and rent it out as quick as you can. Expect your profit in the future value of the home. Don't expect much/any profit from the month to month rent check. Think of it as investment, not a continual source of income.

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If house 'a' is paid off and now a rental property; and i live in house 'b' with very little equity... is there a way to borrow against house a for the down payment of another investment property in texas? also- what's the deal with tx cash out laws? would it be better to put a second mortgage on my current home?

It may be doable but it will depend on your mid score and what LTV you need. You also have the TX cash out laws to deal with. Edit: TX cash out laws restrict the future lending options after you pull cash out. Once the initial cash out is complete the title on your home will forever show that you did a cash out refi and every loan after will be considered cash out. In addition you will be prohibited from getting various types of loans.

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We've found a great deal on a little house. it's small but would suit our needs for the next few years. but 3-5 years down the road, i could see us upgrading to a larger home. in a perfect world, we'd use the first home's equity toward our second (larger) home and still retain the first (smaller) home as a rental property, but i don't know enough about real estate and mortgage lending to know if this is a feasible plan. any advice? the first (smaller) home is selling for way under assessed value, so i'm tempted to scoop up this deal, but i don't want us to be "stuck" in a house that's too small down the road. thanks goz1111 for your helpful and relevant answer! the home in question is a reo home, if that makes any difference. i have no patience for loser spammers who don't even read the damn question! get a life!! i remember when you used to be able to get real answers from real people here. what happened? only real answers please! i report spammers! thank you :)

We have been in our home for 6 years and just recently took a home equity loan. So your plan is feasible. The deciding factors are going to be the value of the home in 3-5 years and how much of that value you owe when you want to take the equity out. The housing market in my area has been kind to us and the assessed value of our home has almost doubled (thanks in part to our improvements). I would not count on that same situation though. I would have a plan B in case the market dips and you don't end up with enough equity to take out of the house . The obvious plan B's could be stay in the smaller house or sell it and upgrade. If the smaller house is selling way under it's value then you have a better chance of making a profit in a few years even if the market doesn't make a major move upwards. Good Luck, poor economic times can provide great opportunities to those who are able to see and act upon them.

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I have had great success investing in houses in the atlanta, ga market. the last two houses i purchased, i bought for less than 50% of their appraised value. i have always gotten a 75% mortgage after doing minor repairs which has given me cash at closing and still have a 25% equity stake in the rental property. however, lenders are now limiting the number of rental properties one person can borrow against to only 4 properties. since i already have more than four, i need a partner who is interested in getting the mortgage in their name. i would do all the work (finding the house, fixing it up, and getting a renter) and give up 25% of the profits. how can i find people who might be interested in this type of investment partnership? are there investment inquiry sites on the internet?

why would anyone just trust you with their money? plus, this seems like a scam to me. you don't have any friends or family who like you enough to do you a favor?