I'm not sure if this will work for you or not, but this what I did.

I refinanced my old home for as much CASH OUT as I could get. I used the cash to repair the old home to get it ready for leasing and the rest of it went towards the down payment on my new home.

I had to prove that I had tenants in my old home.

That was nearly 3 years ago.. the values of BOTH my homes have dropped since then.

I understand that you need equity now to secure your smaller home. If you can't get it from your house.. then it's time to really start saving or paying down other debt to get a higher net income.

Anyone else have any ideas?

In the past 36 percent household were bought only 23 percent investment on properties and 13 percent were apartment. This situation is very critical of real estate.I wish that you house will sale on your desire thinking.


Dubai Property – Sell Buy Rent Properties in UAE Dubai Real Estate & Homes

I rented out my house after the Northridge earthquake a number of years ago. I rented to see if we would like townhouse living. So for us it was a fact finding mission. My first tenant was a pain in the neck, and my second tenant was wonderful. Renting your home can be a nightmare or a good experience. The risk is great, the reward must be greater!

In addition to the other comments made so far, there are a few things to evaluate that will help you make your decision.

First - What are rental houses going for in your neighborhood? Based on the rental prices will the rent cover the property's expenses and debt?

Second - If you would be upside down on the property on a monthly basis are you willing to put the cash into the house on the speculation that you'll get sufficient return either on the tax deductions or the eventual sale of the property?

Third - If the property will support itself when rented, do you have sufficient income or reserves to pay both mortgages if there is a month or two of vacancy between tenants?

I personally would not put myself in a position of needing to pay two mortgages unless I was absolutely certain that it would not cause me a hardship down the line.

The challenge is, even if you decide to sell your current home right now, it could take months or even a year or more before you actually sell it. As an investor I see houses all of the time that have been on the market for 1+ years. I realize I'm in WA and you're in CA, but I think your market is as "challenging" as ours right now.

Before I say what I'm about to say, I want to be clear that I'm not trying to sell you anything. I have no connection with the company (I'm not even going to mention the name of the company in this post) other than the fact that I use their program personally and it works very well, so before anybody reads this and freaks out and calls me a spammer or responds with a speech about how it's a scam and it doesn't really work, I've seen it work. I mentioning it now because I'm happy with my results and I believe anybody who owns a home should give it a try. Ok...end of disclaimer.

There is a company that offers a program of early mortgage payoff. It enables you to pay off a 30 year mortgage in 1/3 to 1/2 the normal time and you can do it without any additional monthly payments. In other words, you don't have to dig into your pocket for extra money every month. If you were to use the system, you could gain a lot more equity. If you couple that with market gains in the next two or three years, you could very well be in a much better position to make your next purchase, even if the value of your knew home has increased with the market. I know it sounds too good to be true, but it's all done with mathematical equations and strategies of paying down interest.

If you would like to know more about the company, send me a private message and I would be happy to tell you more.

I would really like to understand the early mortgage payoff program so that it will be effective in every sense and like wise I can look for other certain things.