another purchase

[ilikejosie]

I just signed a contract for $300K to buy a condo in FL.  The earnest deposit was 10% with additional monies at closing (for summer 2006) coming from my current primary residence in VA (worth $485k).  I am planning to borrow $150k of my equity from my VA home to fund the purchase.  My future plan is to rent this out for a few years since this would be a home I would like to own free and clear someday.  As well, I have another rental in Charlotte worth $150K.  

In the current scheme of things, I have 3 homes.  My VA home has doubled in value and the FL home will appreciate greater than the Charlotte home.  I would like to keep all 3 but I am running out of cash and equity to work with.

Can you suggest an efficient way to maximize my equity and/or cash flow potential ?  I would like to quicky pay off the mortgages for VA and FL but it appears to me the only way I can keep one is to sell one.  I'd like to keep all three properties if I can.  Lately, I've been researching pre-constructions in FL.  Should I buy for example, a pre-construction home, hold on to it and wait for that to appreciate ?Then, I could sell it and apply the proceeds from my sale to either the VA or FL residence.  

Guidance is greatly appreciated.

Thanks,

Josie

[Bud Branstetter]

I don't know if you are saying that the rental properties will cash flow(including mtce, mgt, vacancy) or not. If they will you don't have a problem. If they don't cash flow you need to learn how to buy creatively so that they do. Things like owner financing/subject to, deep discounts, from motivated sellers. That way it doesn't show as a mortgage in your name and you can buy whatever makes sense.

You need to consider what fed interest rates or other external events will have on appreciation rates.  Everything goes in cycles and if you hope appreciation rescues you then look back to what happened in the 80's