Sell up, or rent out 3 homes to finance a new home?
We have 3 homes, one of which we live in and 2 of which we successfully rent out. Our original plan was to sell all 3 and buy our dream home, but as property is no longer selling quickly it's likely to be a fairly horrible long drawn out process. As things stand we're unlikely to get another mortgage as we have 3 already but we have alot of equity tied up in the houses. What can we do to enable us to move to a bigger house?
The equity at the moment is about £250-£300k. We both have good jobs (higher tax bracket), we have no debt and we have around £25k in savings.
Don't get a HELOC. High interest rates and/or interest only is not what you need. That is not a good investment.
Depends on how much equity you are talking about.
Also, if you have proof of the rent, the homes with the mortgages will not tie into your debt to income ratio.
You can refinance all 3, take the extra money and put it towards your dream home. You may want to look into blanket mortgages. It will cover all 3 properties, but will be 1 mortgage. Then you can have your dream home as a separate mortgage. You are definately going to be considered an investor. Go to zillow.com and see how much the homes in the area of your 3 homes are selling for. This will give you a rough idea of how much equity you have.
It would be great if you can get a contract on your current home for rent on condition on buying the new home.