Real Estate people please help, need opinions!?

I purchased my first property through a first time home buyer program, which gave me a rate of 5.49 on my first mortgage, and a second, interest free mortgage of $14,999. The whole $14,999 will be due in full if I no longer use it as my primary residence. I was thinking about refinancing this into one loan so I would have more flexibility with investing in more real estate. I know I would end up with a higher interest rate and payment. Do you think this is a good idea? I want to buy a duplex and live in one side, and rent out the property I live in now. I live in a college town and tenants are easy to come by.

Obviously you took advantage of a specific government program to help lower income buyers to buy houses and now have higher real estate goals. You are right that you will need to refinance the loan on your original property but before you do I suggest you speak to a lender about your ability to even afford the next property you want to buy. These programs sometimes "forgive" part of the small second mortgage over time so you might want to check with the government about the amount you actually owe on it before you speak to another mortgage broker so you can give him/her your true picture.The original loan was given to you because you didn't have so much money coming in and unless you have secured other sources of income you aren't likely to get approved for the future property. The difference in interest payment isn't going to change your monthly as bad as you think, and you will likely be able to absorb most of the difference in the interest tax write off. I admire your ambition if everything works to your advantage!

It is un ethical for an agent to advise you in this setting. You'll probably get responses with contact information. Sounds like you're on the right track though. Good luck. You can contact me direct.

That's something a financial person would have more experience in and not a real estate agent.

If you want to have to be available 24/7, don't mind renters trashing the place, don't mind renting to students and are willing to take the financial risk then go for it. Your money, your future and your risk tolerance.