Hi I'm hoping someone can give me a little advice. Any thoughts will be greatly appreciated.
I’m not sure on which financing strategy will be best and looking for input or ideas.
I am purchasing my first rental for 75000. It’s way below market value of 150000 in an “as is” condition.
The property needs approximately 75000.00 In renovations after which the home will be worth and will sell for median of 265000.00.
My question is… should I use my existing home that is, roll up my existing debt of 70000. and add the 150000.00 (220) for a 30 year mortgage at 4.125% interest rate or, combine my existing debt of 70000. Add another 75000. For a 30 yr. mtg of 140000. To purchase property. I'm not sure if it is a good idea to have the full debt on my existing home. or use the rental for either the equity to repair or take a small mortgage on that one? I expect renovations to be complete within 8 months. If anyone has experience in finance I would greatly appreciate any thoughts.