Buy New House And Rent Old
I have $70,000.00 in equity in my current residence. I Want to Buy a new house and rent the old one. Can I take the equity out of the old house to put down on the new one and then rent the old one? What are the legalities and how would I go about doing this.
I pulled out 90% (80-10). Lived in it two years so I get the $250K capital gains exemption. That cow has been milked -- time to move on.
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"Dissent is the highest form of patriotism" - Thomas Jefferson<BR><BR>
[ Edited by JohnMerchant on Date 09/10/2006 ]
The sixty-four thousand dollar question is, if you draw out the majority of the equity, will the property still cash flow?
[addsig]
Yes, that is a good point. It would be really close to get cashflow, but all I need is the rent to cover the mortgage paymernt and I am happy.
I already have 4 other rent houses. Been there done that. I think I can avoid the Purple Martian tennants!!
Of course they can foreclose. See a real estate attorney for guidance.
[addsig]