Enterprise, AL · Member since 2016 · 5 posts · 0 votes
Hello all! Not sure if this is the correct forum for this, just looking for advice. I am moving away from Florida and have to opportunity to turn my first home into a rental / investment property! Not by choice either, id have to pay a ton out of pocket to sell it. Any ways, should I take the income from the property and pay on principle to eventually be able to refinance and turn it into a higher income property, or better be able to make a profit off of a sale down the road and invest that into properties in the future? or take any income and save it to put towards a second rental property from the start? Im looking about 120 a month in income from this property. Any advice is greatly appreciated! Thank you.
Investor · Chicago, IL · Member since 2010 · 504 posts · 191 votes
9y
Depends on your numbers. Try putting your property through the rental property calc on BP and see if you have a good margin. If so, and there is equity, maybe a HELOC would be good to roll that into a second purchase. If you sell down the road, then 1031 it into something else. I hope that helps