Originally Posted by cjimenez
Can I use equity from my rental property and place it towards my residential mortgage? I am trying to convert my residential property into a rental and dump my current rental.
Can I use equity from my rental property and place it towards my residential mortgage?=======>>>>>>>>>i think so youmay palce it on naother residnetial home by taking it out from your rental home and placing it towards another residential home. plz read below
I am trying to convert my residential property into a rental and dump my current rental.=============>>>>>>>>>>I guess your equity in the residential home is automatically transferred into the rental home;if you convert it to rental home then, your basis is the lower of FMV on the date of conversion OR its adjusted basis;however, I also guess you neeed to review your mortgage contract with your lender, if there is a loan on the property. If the home loan was expressly for a primary resident or the contract has a provision that forbids renting the property, you need to consult with your attorney before proceeding with the conversion.