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Updated over 3 years ago on . Most recent reply

Can one use equity in a property without doing cash-out refi?
Hi all,
I am newer to REI, I have 2 STR investments and my own home. I have over 50% of my homes value paid off and 25% in each investment property paid off. Can one use equity in a property without doing cash-out refi?
TIA,
Amy
Most Popular Reply

Greg Scott
#4 General Landlording & Rental Properties Contributor
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- Rental Property Investor
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You probably can, but that would entail encumbering one asset for the purchase of another one. Cross-collateralizing assets creates a house of cards such that if one falls, the entire structure comes tumbling down. You don't have that issue if you simply do a cash-out refi and then go buy another asset using that cash as a down payment.