Updated over 3 years ago on . Most recent reply
Flip or Refinance this situation?
I am looking to scale in real estate as quickly as possible to eventually give up my W2 job. I was able to flip my first house for a good amount of money to buy a forever home I can’t imagine selling. I am in at 2.825% so refinance wasn’t an option. I was able to take out a heloc this year and buy and rehab a second house and shop that cash flows +$400 / month. The house is old 1922 but the shop is new and valuable. I see it appreciating fairly well and I could probably flip it for about $40-$50g in profit now. My question is should I refinance and scale with this older property? Or should I flip and scale with the next one knowing I will also have more equity to leverage in the future with my main house. Thanks!!
Most Popular Reply
@Jason Wray is giving great advice. There are multiple ways to approach it. You said you want to scale and leave the W2 grind. One way to build up your portfolio and to create monthly income to replace it. Refinancing is not a taxable event so you can keep grabbing equity as time goes on without the tax implications. We do this through our commercial and multifamily investments. The plan is to never sell (taxes)...just keep making money and refinancing.
To replace your W2 now is bit more tricky. You could do flipping and you will make money now. I did that. But it comes with challenges. So, it depends on what your long term and short term goals are.