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No. of Recommendations: 1
Thanks for the responses.

Yes, you guys see the obvious and let me explain.

1)My preferred option would be to do a cash out-refinance on the 1st rental property, which is almost paid off (only 3 years left to pay), and then use that $$ as a down payment on a 2nd rental property.

However, the rental property (our old house) is in my wife's name, her mom contributes 12K a year to pay it off faster, and her mom made us promise not to re-finance or anything. It doesn't make financial sense but unfortunately I can't use the property to get cash out.

The only good news is it is providing about 10k/year in cash flow to cover any expenses and to increase our income. Once its paid off, it will provide about 30k/year in cash flow minus any expenses.

2)I'd like to at least break-even to start if I buy a 2nd rental property but I need to come up with the down payment. I don't want to sell any stock to raise cash (especially since they tanked recently) and so a HELOC seems like it might be the best way, even though the terms wouldn't be the best.

3) I'm financially stable, age 46, with a NET worth over 1 million dollars, have life insurance, so I'm not very worried about putting my primary house at risk with a HELOC.
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