Should I take $200k equity out of my house to buy more property?

[Ryan Jones]

My home is worth $360k,  with a current $130k loan balance (initially put $200k down, 15 year 2.75% fixed).

Should I sell the home, buy a cheaper ~$300k home with $60k down, and have the extra money as cash on hand to start buying a multifamily or commercial apartment unit to use the power of leverage?  Say I start a business with $200k capital...would a bank lend money if the new company wishes to buy a $700k apartment property that produces income?  Basically - I'm trying to not have my money tied up in my home on a low interest loan, and I'd rather use it to leverage bigger property.

[Michael Kimmell]

You might. The numbers have to make sense. I had a duplex that was renting for 2500 a month. I think I netted about 700 from it after mortgage and bills. I came across some deals but needed cash. I sold the duplex and took the 130k equity I had and used it as the down payments for two buildings that made me 6000 in rent with a take home of around 1800. So all I did was moved money and I increased my cash flow and my holdings for the long game. So do your home work and find a deal that makes sense.