Borrowing equity to buy rental property

3 Replies

I have a lot of equity and want to get into the rental property game. Just focusing on getting one right now and doing a lot of research. Is it a good idea to borrow equity from house to do this. Equity isn’t do much for me just sitting there. 

@David Ford It's only a good if you know how and where to deploy it. What type of investor do you want to be? Single, multi, flips, wholesale? It's a factor to consider when selling, refinancing, or taking out a HELOC.

What are your intentions for the current property? If you're sitting on a paid off property maybe it's time to sell, tax free, and look for the next undervalued deal.

What ever you choose don't sit around trying to time the market. 

I retire from my job with a pension in 11 years. My wife and I are in a new build construction so plan on keeping house for couple years until it appreciates. It’s already up 30k. Like I previously mentioned we have a lot of equity we would like to borrow for a rental. We want to build for a better retirement.
We are thinking a single Family home like a townhome. We don’t want to wait till we sell current property but willing to sell in couple years. Going back now I would of done things differently but my bed is made and looking forward.

Spoke to our lender and borrowing isn’t an issue. Wondering if it is a good idea or the best way. We have been putting our extra money on mortgage. Don’t want to wait couple years to buy rental if we don’t have to.