I currently have a home in Washington (Bremerton area) state that is being rented out with approx 60k of equity. I want to use that equity on a down payment on another house.
What markets can I get ahold of that can give me 10-20% ROI. Out of state or in state doesn't matter to me.
@Brian Hill you can achieve those returns anywhere in the Midwest...just throw a dart...but stability and security in a sound investment is another thing...not to mention that if you torture your data long enough it will tell you anything you want to hear.
The problem with high returns like 20% is that it's normally an indication of risk...neighborhoods in transition....$50,000 duplexes that rent at $700 a side...none of these are sustainable concepts. My firm doesn't represent any property less than $75,000 because anything less than that in our market is garbage...sure they all return >15%, but they are guaranteed to be problematic.
My advice would be to focus on matching assets to your personality and interests...in the long run, owning super risky properties is simply not worth it...and setting numbers for minimum return on investment is an arbitrary exercise.
Can you clarify what % of the home is equity? It sounds like you want to refi, heloc etc to get it out, and you’re typically required to still retain 20%. We used equity to buy our first rental :)