Is there any way to leverage $200,000 worth of equity in one investment property to buy another if my credit was just shattered by a divorce?
In 2011, while in my 20's, I invested in a two-family home that now provides $20-24K / year in net income after all debt service and taxes. My goal was always to buy another investment property in my 30s and another in my 40s, however, my personal purchasing power seems to have been killed by a rather unexpected and expensive recent divorce. I have experience in construction and as a landlord to produce positive cash flow; however, with poor credit, I am curious to know if there are any options (such as an LLC or LLP) that would allow me to leverage credit other than my own.
Asked by Beverly
Answered by Robert Henderson
AAMS® CDFA® in Mystic, CT
A reverse mortgage (or HECM - home equity conversion mortgage) CAN be a very usefu...