Equity in home what to do with it

5 Replies

I am new to real estate investing. I want to get my feet wet and do my first brrrr but seems like finding the deal is hard in the Pittsburgh area at the moment atleast not one I've liked. My question is if you would have 200 to 250 k in equity in your home to use should you pull that money to invest and if so should you use it as down payment on multiple 2 to 4 units should you look for bigger properties or maybe partner with someone and do 2 bigger or 1 huge size property ?? Would just like to get different opinions and sides of all the arguments. My mind is maybe do 1 or 2 small projects to get the process down and kinda learn the process then Seek out a possible partner or go in alone on bigger property.

@Andrew M Hawkins I would say to be the cash behind someones deal in exchange for watching them. Take a bit smaller stake in someone elses deal in order to learn the ropes a bit. You could also venture out on your own and do a small triplex or 4 plex. The options are various with the type of cash you have but definitely take that equity out and put the money to work for you. I would even say sell your house and use a FHA loan to live in one of the 4 plexs to get management experience. Hope my opinion helps you with your choice.

@Andrew M Hawkins That's enough cash to start going the BRRRR route if you wanted or use it for down payments on 2-4 units. The 2-4 unit market is starting to get pretty inflated here though nowadays. I'd probably stick to a couple smaller deals to start to get your feet wet then work up to bigger deals depending what your goals are.

@Andrew M Hawkins I would say first measure the risk of how comfortable are you in pulling equity out of your personal residence to use for investing. If you're ok with that, speak with a good lender and see how they feel about your plans. Once you're cool with your plan and you have a lender to support your plan, let's talk about what you hope to accomplish and maybe find that first investment. Real estate, like any other investment, has risks, so make sure you're ready ...and go for it!