Is a 3rd mortgage too risky?

[Timothy Morales]

Hello everyone! I am looking to get started in real estate investing and need some sound advice. I bought my house in 2018 right before the market boom for 369k and did a cash out refinance in 2020

when the rates dropped. My house at the time appraised for 500k and I was able to take out 50k while also lowering my rate 2 points. The 2 subsequent mortgage payments combined now equaled my initial mortgage payment at the higher rate, so I essentially was paying the same but now had 50k in my pocket. I added impact windows and a pool with the money and also have a brand new metal roof thanks to an insurance claim.

Zillow now has my house appraised from 585k-646k which means I still have a substantial amount of equity I can tap into. My first mortgage is for 285k and second mortgage is at 40k which means I can take out 84k-127k (depending on appraisal) with a 70 LTV ratio. Is it too risky to do this on my primary residence. I live in Miami and don't foresee my house value crashing to the point where I'll be underwater and get margin called but crazier things have happened. Any advice will be much appreciated. Thanks!

[Robin Simon]

I agree - 2nd mortgages are risky enough, 3rd is way too much risk IMO especially if you don't have a ton of experience and with rates where they are currently