I've finally decide to move ahead on investing but need a god mortgage broker to structure how we do this.
I am currently in a property with a legal basement apt rented out...rented for a few years now so got a taste of the good and bad of renting.
Now, I want to start a portfolio but also want to change to a another principal residence..i see 3 options:
1) Buy the new residence using equity from my HELOC, move into it and rent the current one as 2 units. - top and bsmt. problem is I cannot writeoff the interest this way. I need to know how much new property I can actually afford using how much ever rental income I can add to my regular income ( 50% or 80% whatever the lending institution allows).
2) Buy another rental using equity from HELOC on current property ( can write-off interest against new purchase and the portfolio now has 2) and increase my total income then look for a new Principal ( this will probably allow me to afford a higher mortgage)
3) By the new residence using cash for the downpayment and then go buy the 2nd rental using Heloc equity from the current property.
Might be confusing but I am hoping there is a mortgage broker in my area who can work through the various options and lets see what is the best one...
Any suggestions/ advice appreciated.
Andrew
2)
I am currently in a property with a legal basement apt rented out...rented for a few years now so got a taste of the good and bad of renting.
Now, I want to start a portfolio but also want to change to a another principal residence..i see 3 options:
1) Buy the new residence using equity from my HELOC, move into it and rent the current one as 2 units. - top and bsmt. problem is I cannot writeoff the interest this way. I need to know how much new property I can actually afford using how much ever rental income I can add to my regular income ( 50% or 80% whatever the lending institution allows).
2) Buy another rental using equity from HELOC on current property ( can write-off interest against new purchase and the portfolio now has 2) and increase my total income then look for a new Principal ( this will probably allow me to afford a higher mortgage)
3) By the new residence using cash for the downpayment and then go buy the 2nd rental using Heloc equity from the current property.
Might be confusing but I am hoping there is a mortgage broker in my area who can work through the various options and lets see what is the best one...
Any suggestions/ advice appreciated.
Andrew
2)
