Do you own or have ever dreamed of owning multiple properties? Whether it’s a cottage, rental, or several properties in a holding company – there are few mortgage brokers or bankers who have the experience to help you cash flow these properties and build on your real estate wealth.
We’ve helped 1000’s of clients reach their real estate ownership goals. We have the experience and know-how to help you purchase additional properties, structure mortgages to help you succeed, and access equity to help grow your real estate portfolio.
Here are often overlooked opportunities for people who wish to purchase or have multiple properties.
Carrying a Mortgage on your Primary Residence, While your Rentals have No Mortgages
The interest on a rental property is always tax-deductible, while the interest on your primary residence is normally not. That’s why you normally should have the largest mortgages on your rental properties (while still maintaining positive cash flow of course), and work towards paying off the mortgage on your primary residence first.
We can work with your accountant to determine how to best use the equity in your rental property to pay off or pay down the balance on your personal mortgage. Now’s a great time to review this option as home values have increased in the last two years. Once the mortgage on your home is paid off, they’ll be other opportunities to use your home’s equity for the future (if you choose to!).
Converting your Existing Home into a Rental to Purchase Another Owner-occupied Home
Are you living in the home that you purchased as a first-time homebuyer but have outgrown it? This presents a unique opportunity as your current home may make for an ideal rental property. Why? Usually, first homes are condos or townhouses that lend themselves to be rented out. You may find that within your complex there are already several rental properties. Before you decide to sell your existing home and upgrade to another one (and if you’re a little entrepreneurial) consider converting your current home into a rental property.
You’ll want to be proactive and restructure your existing mortgage on your home before you decide to go shopping for another property. Why? It’s easy to refinance a property while you’re living in it!
Best Ways to Access the Equity in your Homes – Mortgage vs. a Secured Line of Credit
We get this question all the time and it really depends. We find the secured line of credit option works best if you’re not sure when you’d be buying another property. Whereas if you’re looking to access equity from a rental property to pay down on your own mortgage, we’d recommend a standard amortized mortgage as it will give you a lower overall rate and only one payment (instead of having a mortgage and then a secured line of credit payment).
It’s important to work with a mortgage professional who has firsthand experience in financing multiple properties. Looking beyond just the interest rate we feel is the most important aspect of being successful with your real estate investments. We can help you develop a strategy that will help you save money and build wealth – all you’ll need to do is implement it! If you want to get the conversation started with us today, schedule a free 1-on-1 Consultation.