Originally Posted by
ercchry
So, I’d say the best strategy requires way too much detail to publicly discuss… but here are some things to help you figure it out:
Rental offset:
All lenders have a different approach to percentage and what expenses are included, it can range from using 80% of the rent against the mortgage, property taxes, and half the condo fees to 50%, and only the mortgage payment.
The trick here though is have your existing property mortgages in place first, as if the lender is doing a refi for down payment and the new purchase all at once they are using the stressed payment (rate+2%) to qualify that rental vs actual payment as they would if it already is in place.
So after they put all the above into the worksheet they get a +/- monthly amount and that’s added to either your income or your liabilities. A good broker will use the worksheet and submit like this, one that doesn’t deal with complex deals will use their submission software which is less beneficial.
Tax advantages (like Killy mentioned) is great, but depending on the above plus your useable income, it’s hard to say if the numbers will workout, and pulling equity out of the properties means today’s rates on a minimum of that new money you’re pulling out, that of course ruining your current cashflow , and will depend on how reliant you are on that cashflow, also your rental mortgage rates will be higher than your primary rate, so will have to play with some scenarios to see what works best