Real estate investment failed - not really?
#1
Real estate investment failed - not really?
No, I have not done anything yet. Ok, here is a what-if situation.
I have one rental property. I like to get another rental by taking the equity of the rental property out.
I have a primary home that is not tied to any loans at all.
So 3 house, two with loans, one 100% equity.
We can support this, both wife and I work. But $hit does happen in life. Let's assume everything goes bad.
Questions:
1. Can the bank take both my rental investment property away? Yes.
2. Can they take my primary home away? Maybe, sure anything can happen, but does it happen often? What about other assets like cash, cars, etc. Again, none of these is put up against the loans.
This is more of a security question. There is a good opportunity for me to make an investment. But I just fear the risk involved. If I was 25, it's ok to start over. As a family man with kids, I'm a bit afraid of that risk. I'm pretty sure we can "survive" it, but it's about "providing" and not just "surviving."
Comments, advice, opinions welcome.
TIA.
I have one rental property. I like to get another rental by taking the equity of the rental property out.
I have a primary home that is not tied to any loans at all.
So 3 house, two with loans, one 100% equity.
We can support this, both wife and I work. But $hit does happen in life. Let's assume everything goes bad.
Questions:
1. Can the bank take both my rental investment property away? Yes.
2. Can they take my primary home away? Maybe, sure anything can happen, but does it happen often? What about other assets like cash, cars, etc. Again, none of these is put up against the loans.
This is more of a security question. There is a good opportunity for me to make an investment. But I just fear the risk involved. If I was 25, it's ok to start over. As a family man with kids, I'm a bit afraid of that risk. I'm pretty sure we can "survive" it, but it's about "providing" and not just "surviving."
Comments, advice, opinions welcome.
TIA.
#2
Generally each loan stands alone. The answer to your questions is that if the mortgage is paid on two of the properties, the bank would foreclose only on the delinquent one. Depending on your state, they may get a deficiency judgement for the unpaid balance after a forced sale.
Extreme caution suggested in pulling cash from your rental for down payment. Make sure that you have big reserves in case things go to hell. Also make sure the numbers will work for all properties from day one.
Extreme caution suggested in pulling cash from your rental for down payment. Make sure that you have big reserves in case things go to hell. Also make sure the numbers will work for all properties from day one.
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