Pulling out/setting aside $50K home equity on primary residence
I currently have enough equity in my home to comfortably do a cash-out refinance for $50K. I do not have any deals lined up in order to put the money to use right now, but I am thinking that since it isn't really doing anything anyway, it will serve me better in a savings account- ready to be applied when an opportunity presents itself. Aside from research, this would technically be my first step into the world of real estate investment. My first year goal is to locate 2 or more properties for no more than $100K each and use the money as down payment on REI loans. My credit is excellent and I have no debt outside of my primary mortgage, so consequential small lines of credit are not a big deal if < $10K loans become necessary for closing fees, small repairs, etc.. My questions are as follows:
1. Does this read as a reasonable approach for a newbie?
2. Aside from the difference between what that $50K will cost me in additional mortgage interest and the anemic interest made in savings (for now), are there any downsides that I might be missing?
While I am not risk-averse, I tend to be conservative in my approach to investment. This has cost me opportunities in the past, but has also saved my bacon more than once, depending on who I choose to ask. :-)