What to do with 90k equity

Question

Hello All,

My situation is I have about 90k in equity I owe 70k on my townhome and have been thinking about using my this as the home to start investing. I live about 30 min outside of Atlanta GA. I could rent my property for at least 1400 its a 3bed 2.5ba with 2 car garage. Or sell for 180k. I'm not sure if the best option would be to sell or to plan to rent it out. Any advice would be appreciated.

Mark Fries · Answer

@Sarah Enow

I wouldnt do anything with it for the next 3-6 months. See how the election and markets play out.

Joseph Firmin · Answer

Hi @Sarah Enow, I also live in the ATL area. The answer/advice depends on your goals. If you'd like to start your investing, then rent it out, have access to your equity and go buy something else as a rental. Use the $90K as your seed money to implement the strategy that best fits your goals. You could think about renting this out as an AirBnB also, which could be a great option in ATL to improve on the cash flow. Lots of ways to go here, but if your goal is to start investig in real estate and grow your portfolio - get the HELOC, use the equity and buy more property.

Brenden Mitchum · Answer

Hey @Sarah Enow, welcome to the BP community!

I agree with both @Joseph Firmin and @Mark Fries. What you do will definitely depend on your REI goals. Also, now is not the best time to jump all in. That being said, it is a great time to educate yourself and find out what you should do with that equity. Posting here on BP is a great start. Learn as much as you can about the market (not just the real estate market) and position yourself to take advantage of potential opportunities. Essentially, just be fully prepared to make your move when the time comes.

Obviously, this does involve really developing those goals and a plan to get there. If you are unsure or just want to talk through this with someone, please feel free to message me anytime!

What to do with 90k equity

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