Hi Guys,
I'm doing some sums at the moment to see if it is achievable for me to invest again. Does this sound logical as I would be paying LMI twice to get into IP2:
Current IP1 Value = $400000
Outstanding Loan = $296000
Refinance at 90% (LMI kicks in) = $64000 available equity
IP2 Purchase Cost = $350000
Borrow @ 90% (LMI kicks in)= $315000
Equity used from IP1 = $45000 (equity remaining is cash buffer for IP1)
Acquisition Costs for IP2 = $20000 (estimate)
Own Money put into the deal = $10000
Total Purchase Cost for IP2 = $370000
- have I got these figures correct and in this scenario would I be able to use LMI twice to put this deal together ?
I'm doing some sums at the moment to see if it is achievable for me to invest again. Does this sound logical as I would be paying LMI twice to get into IP2:
Current IP1 Value = $400000
Outstanding Loan = $296000
Refinance at 90% (LMI kicks in) = $64000 available equity
IP2 Purchase Cost = $350000
Borrow @ 90% (LMI kicks in)= $315000
Equity used from IP1 = $45000 (equity remaining is cash buffer for IP1)
Acquisition Costs for IP2 = $20000 (estimate)
Own Money put into the deal = $10000
Total Purchase Cost for IP2 = $370000
- have I got these figures correct and in this scenario would I be able to use LMI twice to put this deal together ?