Hello, my name is Lawrence Cox III. I have owned a 4-plex since 2001. In 2012 I was able to purchase an 2 bd 2 b mobile home. I now have the mobile home paid off. I have a mortgage on the 4-plex. I should have some equity but would like to do some repairs first before I have an appraisal done. I estimate between 50 - 65k in equity. Would it be a good idea to borrow this to purchase the next investment? And should I buy something that would be free and clear and use the equity again? All advice is greatly appreciated. Thanks in advance.
Lawrence Cox III
Everyone has their own opinion over this. I personally put as little down in the units as possible. Therefore I do not pull the money out of the units in order to keep us stable and build equity! So for us we use the rents and other methods to buy again! Again this is a very each person has their own style argument
welcome to the site.
Thanks for the reply Elizabeth, that is how I would like to do it. As a Christan the bible talks about being debt free. But I hear and read a lot that in the real estate investment that you should always be in debt for tax purposes and legal issues. At this time as well I do not make enough passable income to fund the next investment. I am getting anxious to be able to do this full time. Just thinking this may get me to the next stage.
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