What to do with my first purchase??
Hi All -
I bought my first apartment as a primary residence about three years ago in New York City with a conventional residential loan. I completely renovated the apartment immediately and have been living there ever since. As I've become more familiar with real estate investing strategies, I've started to think more carefully about what to do with this apartment.
By way of quick background, my goal is to build a portfolio of buy and hold multifamily properties and small apartment buildings, starting with one purchase this year. I've started to research a few areas to narrow down where specifically I will make that investment, and I intend to again use conventional financing (although commercial given the number of units).
Having said that, I'm still paying a mortgage on my first property, and while I know I'm building equity, I can't help but feel that the payment is a cash drain. In my opinion I've got three options and I would love to hear BP's feedback on my thinking. 1) Do nothing and pursue the multifamily strategy. 2) Cash-out refinance and rent the apartment (would be subject to sublet fees, etc. from the co-op). 3) Sell the apartment and use the cash to put a down payment on a house hack.
Has anyone been in a similar situation? Would love to hear people's thoughts on any part of the strategy and maybe other options I should be considering.
All the best!
Mike