Updated over 4 years ago on . Most recent reply
Give me your opinions on our potential plan!
Is there a better way to go about this? Here's what we are planning to FINALLY become real estate investors:
1) Cash out Refi on our current home
2) Rent out our current home
3) Use the cash out to buy a new home to live in.
4) Do it again
Does this make sense? For reference, we are in our early 40s. Main goal is to have something for retirement, not really interested in passive income right now.
Please feel free to poke holes in our plan or suggest better ways to accumulate at least 3 properties by the time we retire in 20 years.
Most Popular Reply
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
John, make sure your heloc is fixed rate and how long its good for. It used to be they were all variable and started getting called in 10 years. I know there are more options now, but just a thing to know as far as rising costs and eventually rising payments. There's obviously going to be some cure for the bank so you cant borrow 3% money 20 years from now.