Best way to purchase this property.

[gwhiz_612]

If someone would help me on this one I would be grateful.

My wife and I just purchased a home in our city. Actually its a 3 acre lot with a home on it. The home is useless, damaged beyond repair and will need torn down. I currently own another lot with 2 homes which are being rented. I have about 50k in equity in those. My wife owns 1 home, its the one we are living in until we build our new house on the 3 acre lot. There is about 40k equity in my wife's(our) home. My question is what is the best way to set this up? I agreed to a cash transaction with the seller. The purchase price is 60k. The actual cash that I feel comfortable putting down is 20k. I am thinking of taking out an equity loan on our home to pay the difference and then paying it off when we sell. Or I was going to borrow from my 401k and pay myself back including the interest over 5 years. My friend told me that I should create an LLC and rent out all of my properties to generate some decent cashflow and not outright sell my current home. I'm not sure what the best course of action is. Please help.

[gwhiz_612]

cool, I'll try that.