Second property investment

[Aroldo Gonzalez]

Hello everyone, I am contemplating on purchasing another property in SLC. But with the new high interest rates it is very hard to decide if I should wait or bite the bullet. My current property was purchased in 2020 with a 2.4% interest rate . I am currently running ads to rent out the entire property and will be able to bring in $500-$800 in cash flow after all property expenses and have received multiple application requests. I do have a bit of equity to in my current property and was wondering if it would be better to pull a HELOC and buy another property, refinance or sell?

[Nathan Gesner]

Quote from @Aroldo Gonzalez:

If you borrow money from your current property, that will increase your debt and reduce - and possibly eliminate - your cash flow. 

It is better to increase earnings, reduce expenses, and save up for the next investment. Because the market is difficult right now, it may take much longer to buy your next property, but you will be better off saving and investing from a position of strength rather than borrowing money to borrow more money.