Looking for suggestions

[Wilfred Morales]

Newbie here. My primary residence has appreciated roughly $200k and I’m trying to figuring out what would be the best investment route to take. Any suggestions would be greatly appreciated.

[Nathan Gesner]

Quote from @Wilfred Morales:

Newbie here. My primary residence has appreciated roughly $200k and I’m trying to figuring out what would be the best investment route to take. Any suggestions would be greatly appreciated.

Welcome to the BiggerPockets forums!

I've been seeing a lot of new investors that benefited from a ridiculous market that produced a lot of income. You got lucky, now you want to invest and keep the ball rolling. That's not a bad idea, but be careful. If you maximize leverage on your primary home and then make a mistake investing the money, you could lose on the investment side and impact your personal finances. I saw this happen to a lot of people during the last housing craze when people cashed out their equity to pay off debt or invest in real estate, only to have the bottom drop out, they lost the equity and were underwater, and everything else fell apart.

We don't expect the market will crash that hard again, but a lot of people are predicting a hard correction with values dropping 20-25% in some markets. I'm just advocating for caution and very wise decisions to ensure you don't get caught in a difficult spot.