Opinions on my next move

Member since 2024 · 1 post · 5 votes

Hi guys, I’m a rookie investor, I own a duplex that iv been living in for 5 years. The market I live in isn’t the best market to invest in now. I’m currently putting in offers in a new market in Syracuse Ny, because of job opportunities there and the market is more affordable. I have over 100,000 in equity and no current debt. But I’m looking to scale my portfolio using the equity in my current house. What would be the best route to scale my portfolio with cashflow being most important?

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Jaron WallingPro Member

Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes

@Justin Scott Probably open a LOC on the current duplex, combine that with cash (you, OPM, HM), and BRRRR a property in Syracuse.

We're getting into a buyers market. You should have more leverage. If you're able to make low cash offers, add value, and cash out after a rehab you'll be way ahead. Distressed properties come with problems but solving them equals equity which is cash in your pocket.

The other option is buying another property with savings, turn-key, or new construction. I would not pull equity from the duplex to buy something like that. I'd rather buy below market, create value, and pay off a LOC, private, or HM lender. That way you're not hurting the duplex you worked so hard for to buy in the first place.

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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
1y
@Justin Scott Probably open a LOC on the current duplex, combine that with cash (you, OPM, HM), and BRRRR a property in Syracuse.

We're getting into a buyers market. You should have more leverage. If you're able to make low cash offers, add value, and cash out after a rehab you'll be way ahead. Distressed properties come with problems but solving them equals equity which is cash in your pocket.

The other option is buying another property with savings, turn-key, or new construction. I would not pull equity from the duplex to buy something like that. I'd rather buy below market, create value, and pay off a LOC, private, or HM lender. That way you're not hurting the duplex you worked so hard for to buy in the first place.
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Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
1y
@Justin Scott,
Hey! Since your main goal is cash flow, using your equity to invest in turnkey rentals in strong Midwest or Southeast markets can be a smart move. These areas often offer homes that are already rented or have property management in place, which reduces the headaches of managing out-of-state properties while giving you reliable cash flow.

With $100K+ in equity and no debt, you could:

Cash-out refi your current duplex to pull some equity.

Deploy that capital as down payments on one or more turnkey single-family rentals in markets like Canton or Akron, OH; Columbus, GA; Birmingham, AL or Southaven, MS.

Focus on single-family homes or small duplexes that can generate positive cash flow. This allows you to scale gradually without over-leveraging.

Work with experienced property managers in those markets so your investment is mostly hands-off while still providing steady cash flow.

Always happy to chat more about what's worked for other investors or about specific markets.
Best of luck!
[email protected]313-221-8718
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Jason Ha
Rental Property Investor · Elk Grove, CA · Member since 2024 · 23 posts · 6 votes
1y
Something else you could think about is to do live-in flips / house hacking to build capital. Not a tax expert, but I believe you can sell your primary residence after two years tax free up to a certain amount. I'm not too sure on the specifics, but it is something you can look into if interested in that route.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
@Justin Scott you state the market you are in is not the best to invest in, but what does that specifically mean?
If NOT a good rental market - sell!
If it is a good rental market, but prices are now too high to buy for cashflow, it makes sense to explore other areas.
As others have mentioned, get a HELOC on your current home, which we can use to acquire the next property.
- NOTE: you should have a strategy to refinance the next acquistion to pay off as much of your HELOC as possible. HELOCs have variable rates which may increase and kill your cashflow.
- Worst-case you want the HELOC to tap in emergencies.
Repeat what you've already done: buy a 2-4 unit to live in and rent out the other units.
- Experiment with MTR and STR on one of the units to increase your cashflow.
You could even buy a fixer-upper using an FHA 203(k) rehab loan.
- Then you might even not need to tap your HELOC.
DM us if you'd like to chat about more specifics:)
[email protected]248-209-6824
Logical Property Management4.9458 Reviews
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Anthony L Amos Jr
Real Estate Agent · Columbus | Toledo · Member since 2019 · 607 posts · 768 votes
1y
Quote from @Justin Scott:

Hi guys, I’m a rookie investor, I own a duplex that iv been living in for 5 years. The market I live in isn’t the best market to invest in now. I’m currently putting in offers in a new market in Syracuse Ny, because of job opportunities there and the market is more affordable. I have over 100,000 in equity and no current debt. But I’m looking to scale my portfolio using the equity in my current house. What would be the best route to scale my portfolio with cashflow being most important?
You're actually doing the right thing—taking action in a more affordable market that aligns with your goals is huge. Keep those offers going on properties that meet your cashflow criteria and don’t get discouraged by slow responses or rejections.

If you're open to other markets, take a look at places like Toledo, Dayton, and Cleveland OH. They’ve got strong cashflow potential, especially for small multis, and plenty of investor-friendly pockets.

Are you leaning toward BRRRR, turnkey, or something in between? That'll help shape how you deploy that equity.
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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 923 votes
1y
@Justin Scott
Hey Justin, sounds like you're in a great position with equity and no debt—that gives you a lot of flexibility. Tapping into that equity through a cash-out refi or HELOC could give you the capital to pick up multiple cash-flowing units. Since you mentioned cash flow being most important, definitely look into some Midwest markets as well. The barrier to entry is lower, and many investors find the rent-to-price ratios much stronger compared to coastal or higher-priced areas. That way you can diversify across markets while still keeping your primary focus on strong, steady returns.

[email protected]614-418-6081
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