Mortgage question - Buy house. Keep condo as investment property..
Now, the most conventional thing to do would be to sell the condo and use the proceeds as a downpayment on the house.
But what if I wanted to keep the condo as an investment property and rent it out?
If I went that route.. coming up with the 20% down payment would be a challenge.
Would I be able to borrow against the condo (ie. take out a mortgage.. I currently don't have one.. fully paid off!) for this? Or is that making the down payment with borrowed money and a no-no?
Related question.. for tax purposes (ie. rental income).. would it be better to have a mortgage on the condo?
I'm thinking the optimal strategy would be to take out the max mortgage on the condo (offset rental income with mortgage payments to reduce net income..).. I think that'd be 80%.. and take out a mortgage on the house I'll buy for the remainder?
Am I making any sense or am I totally confused?