Advice Needed On Leveraging 5-plex To Buy A Quad

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Need some advice, I have a 5 unit that was bought low, rehabbed, fully rented and doing well. I now have my sights on a quad that would cash flow and is near my residency (big factor to me).

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Question, Can you get a loan against a commercial property to be used as a down payment on a quad? Something like a fixed rate CLOC, I have not looked into how to leverage against the equity on the 5-plex. The 5-plex should appraise around 460K and the loan outstanding loan is 180K. I used a HLOC + the 180 to purchase the 5-plex so I guess the HLOC is against my home and on paper it looks like I only owe 180K on a 460K property…seems like I could capitalize on this equity and purchase the Quad.

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Any thoughts or lessons/suggestions on how to proceed? Thanks in advance.



[ Edited by Waylon on Date 04/15/2006 ]

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