Understanding Return on Equity and when to Cash Out Refi?
Hi All,
My goal is to grow my portfolio to generate cashflow to live off of passive income. Mainly interested in BRRRR deals.
I have a couple SFH rental properties here in the midwest that are fully paid off. Having this equity sit around feels wasted and I could be using it more effectively to reach my goal.
Both properties' market value is about $220,000 and both cashflow $14,000/annually. ROE=6%
What is considered a good ROE? Can having too much equity be considered a bad thing? In this case I should do a cash out refi to invest in other properties, right?