Buying more rentals in eviction moratorium environment?
I am cash out refinancing 4 rentals to buy 4 more rental houses. I have cash on hand to do it, but figured I'd reduce my taxable income and avoid putting fresh money that is not subject to RE capital gains taxes into new deals.
At first I was not going to buy new ones in WA because of the seemingly never ending eviction moratorium. But then I did some digging and found many other states have extended theirs as well and then the CDC came out with a national ban.
I figure I can mitigate this by being EXTRA picky about income, credit and career field, making sure it's a multi income household, and also that it would be worth it to take on the rentals if I reduce the risk like this. I'm pulling out nearly 500K out of rentals, much of which is coming from 2 rentals I bought just 3 years ago.
I figure the rising prices and long term rent increases will be worth it, and I'm also considering a new strategy, rather than relocating my rentals, I'd leave them here to get the insane appreciation and cash-out refinance periodically to buy rentals paid in cash in a different lower cost of living state I plan on relocating to. This way I will have my 10 loans maximized and appreciating for me here, and any number of paid off rentals for insane cash flow where I want to move to. Boom!
Thoughts?