I have recently been gifted my grandparents’ house. A three bedroom one bath single family home that is worth 78k (in Montana). I have very low paid expenditures, currently the property tax is $1,100 annually, I pay 65$ in insurance and I am setting aside 7% in capital expenditures, best of all no mortgage.
I am super excited for this opportunity to start my road to financial freedom and I know this opportunity is a way to start down that road. I am currently writing a rough business plan to get me there. I have read several real estate investment books, have watched and listened to over 300 hours of videos and pod-casts. However, by no stretch of the imagination do I think I know it all or an expert.
My question is how to tap into this positive equity to purchase another investment rental property? Would it be better to borrow against the home? I have access to roughly $40K for a down payment Thank you in advance BP community!Antonio
If you already have access to $40K for a downpayment, I would start with that and leave your property alone. Use your free and clear money to get started, when you need money for your next property, then you refinance this property to get cash out. Make sure the terms and numbers work with a mortgage so that you are still cashflowing. :) That's my personal opinion. Congrats on the house!!!