Loan question: Refinance existing property or get a loan on subject property purchase

Sounds like the approach you have in mind will be your best route to take and most definitley the cheapest. The guidelines have changed dramatically since 8 years ago. The only thing that you may run into challenges with is income being that you are self employed. There are no more stated income loans, or bank statement loans. You will have to show full business and personal tax returns in order to qualify for a loan. it will all come down to home much income you claim. Good luck!

You would probably benefit the most by putting 20-30% down on the investment property and not touching the equity in your home. Rates are really low, and the process is not much different. You now need to show tax returns for income, so if you write off all your income, you may have a problem. Also to use rental income for any property you already own, you need 30% or more in equity to use the rental payments as income. I am a direct lender in California, if you are interested to learn more about the programs available to you and the process, feel free to contact me. Thank you.