Should I use the $100K equity in my personal home to invest?

2 Replies

Should we use the $100K equity in our personal home to invest in "buy and hold" rental property? My wife and I make a combined low six figure income with our day jobs and have good credit, but we are newbies to REI. Our goal is to generate some semi-passive income while keeping our day jobs. I'm a cop she is a school teacher. Any ideas or words of wisdom? Thanks!

Johnny

Is that the total equity in your home? Or excess equity you can access through a line of credit? If it is the later, what is your interest rate? If you can beat the interest rate with a margin of safety, it's probably worth looking at. 

The $100K is the difference between what we owe and what market value is right now. I'm not sure if you call that "total equity" or "excess equity."  I guess a better question might be... What is the best way to access the equity in our home for the purpose of real estate investing?