What Should I Do With All This Equity?
Hi Investors! This is my first post:)
I'm curious to get expert input on what I should do in my situation. I live in Austin, TX and I own two homes in the two highest average annual appreciated zip codes (78702 - 12%, 78721 - 11%).
I bought my first house in 2013 for $180k. I owe $133k on it currently. It is worth around $290k now. I lived in it for 2 years, but it is now rented and cashflowing $400/month.
I bought my second house in 2016 (primary residence) for $300k, put a bunch of work and about $34k into it to make it nice and convert the detached garage into a 1/1 little house. It is now worth about $450k. I live in it, but rent the back house on Airbnb - I'm cashflowing on average about $900/month plus I live for free.
I'm in a very good position for age 28, but I want to keep investing! I went from full time elementary school teacher, to part time to focus on my property management and open a small business. This makes it really hard to get a loan or to even cash out refinance because they cant count a lot of my income.
My question is: How do I best use this equity? Or if you think I should let those properties be, how do I continue to obtain properties with such a perceived high DTI ratio?
I hesitate to sell my initial property because it is cash-flowing and it is continuing to increase in value. In Texas, I cannot cash out refinance on a rental property, only a primary residence.
If you were in my position and wanting to build your portfolio, what would be your next step?
THANK YOU SO MUCH IN ADVANCE! This platform is so amazing:)