I have a question about either continuing to live in my current mortgaged home (L.A. Area) or sell it and pull out the equity to invest in rental properties. I have lived in my home for over 2 years and have earned about $175k in equity. If I were to sell and move, I would have to sacrifice living in a rental property but would have the opportunity with my earned equity to invest in a few out of state rental properties. I wouldn't be able to invest in rental properties in my area of LA due to the cost of the market.
The other option would be to stay in my home but not have the opportunity to invest in rentals as my current cash flow and savings is tight.
I have been watching the market I live in and it seems to be slowing down after the last couple of boom years.
I am having a hard time figuring out what the best financial strategy to start my property rental business. Any advise on this would help.
Would a cash out refi be an option? It might offer a good rate with tax advantages.
I have vague knowledge of both options (cash out refi and HELOC). What are pros and cons of each?
@Joe Winkel Here is a good comparison of them
Thank you for the guidance. This helped.
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