If I buy an income property for 300k cash, how much of that equity can I borrow for the next property?

Assume all the numbers would work. Assume good credit. What % of the equity can I borrow on to buy the next property? How does the process work (ie is it like a HELOC but for an income property or would I refi?). From there I would like to continue on this basis to grow a portfolio. Also would it matter if the property were single family, multi-family, or commercial?
In Buying Property - Asked by Larry K. - Feb 11, 2010
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Larry F.
Melbourne, FL

In this market, it really depends on your personal financial status, experience, property's appraised value, etc., but probably the lesser of 70% LTV or LTC, then you could use that money for a down payment on the next one and borrow 70% on that one too. Remember, you will probably need a minimum debt service ratio of 1.2.

Feb 11, 2010
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Nick N.
Cincinnati, OH

Just a side note: Be sure to check for seasoning issues. The lender you are using to refi or obtain a credit line with may require 6-12 months seasoning.

Feb 18, 2010
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Gregory G.
San Francisco, CA

40%... money's tight.
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531

Feb 26, 2010
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