Hi Folks very new investor here hoping to make the best possible next move. So I was fortunate enough to have my parents sign over a 2 family house to me which I have spent out of pocket $50,000 in remodeling costs. I am currently temporarily living in the renovated apartment until I move to Florida in October. At some point I will have to renovate the first floor apartment ($20k) which currently has a paying tenant. I would like to continue purchasing properties for passive income. My question is do I cash out refi to cover my out of pocket, out of pocket & future renovation, or out of pocket, future renovation and next purchase and how much? Or do I continue to own it out rite?
Property current value-$300k
Monthly cash flow (after I move out) after all expenses including vacancy & capex-$1,350.00
Look forward to any thoughts and wisdom to unstick me!
I’m surprised to see *crickets* on this one, as there are many outspoken proponents of both methods: leaving all cash in will increase your cash flow but has “sunk” equity with a slow velocity and return, while leverage will give you a better return on investment.
My opinion has changed with my age and stage in life. My husband and I were aiming to “go wide” with leverage and then “go deep” and start paying houses off. What do you need at this stage of your life?
Thank you for your response.
I feel like I’ve been given an opportunity with this property but just not sure how to take advantage of it. My Wife and I are in our early 50’s and would like cash flow. So not quite sure how’s best to balance cash flow and good use of equity. Lack of experience I suppose.
Just looking for some wise guidance.
Hoping to get some good advice on this.