Can you explain me how it works?
For example, I have unit withouth mortgage worth about $350k. I am geting $300 pw rent.
Can I finance new unit (same value) with $230k from equity and pay mortgage on $120k.
On this mortgage I could be CF+.
Can use lefover of $120k from first unit to buy something else?
When can I use equity from second unit?Sorry you have totally confused me.
I think the question is can you use equity in one property to finance the next one and so and so on.
If so then the answer is Yes and is how most investors fund their portfolios.If this is not the question can i get you to start again.
Richard Taylor | Australia's leading private lender
Possibly wiser to use the new unit as 80% security & LOC of 20%+costs on the first unit.
You will still be paying interest on the $230k "equity" as you are redrawing it – ie you will be borrowing 100% + costs and paying interest on the lot.
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