From: yardleymj@yahoo.ca (Michael Yardley)
Newsgroups: misc.invest.real-estate
Subject: Re: Equity in current  rental used to buy more property
Date: 19 Aug 2004 11:44:21 -0700

rob@datagrip.com (Rob Marreel) wrote in message news:...
> Hello:
> 
> I was told by a real estate investor that you can use the equity in
> one rental property as a down payment for a new rental property. Is
> this true?
> 
> I currently have 40k in equity in my first property and am trying to
> buy another property with little to no cash out of my pocket.
> 
> Any information would be appreciated. 
> 
> Thanks.
> Rob


<<<<< In time's of raising price's using equity to buy another
property is a good idea. World wide price's are at an all time high.
The Bank of England in the UK has raised it rates, trying to curb the
inflationary price s's in the UK. In today's Canadian Press the Royal
Bank is saying that people in Vancouver where I live are first time
buyers and they are spending as much as 47% of income to pay debt. The
indications are that we will have prices dropping world wide due to
higher interest rate's. My personal oppion is that it is not a good
time to buy using a second mortgage, you could run into trouble.
Better to get a long term first mortgage at low rate's while the
rate's are low. Raising rent's and paying it against the mortgage  and
trying to clear title the property over time many be a better
approach. Do not be greedy. If you own just own one property clear
title it is all you need for a good retirement income. The Donald
Trump's of the world are a dim a dozen. If property values are not
going to go up I would not take a second mortgage. Stay on the
Conservative side is the better way to go. >>>>>>>>>