Looking to invest first rental property with home equity

Buying & Selling Real Estate
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Looking to invest first rental property with home equity

Kasey Ferlic
Member since 2021 · 2 posts · 0 votes

Hello, I am new to real estate and on an extreme learning curve. We just bought our first home in May and it's already appreciated 200K. We have some capitol plus the home equity and looking to potentially invest in our first rental property for cash flow and longer term investments. We live in WA where the market is hot and want to invest in the area.  Is it worth jumping in and buying now before COVID is over and the market just keeps booming and increasing? Is it crazy to invest in a second property within a year of buying our first? Any insight on home equity loans, QOZ, 1031 and how to best approach this investment would be much appreciated. Thank you in advance! 

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  • Daniel HymanBusiness Member
    CPA · Milwaukee, WI · Member since 2016 · 2k+ posts · 1k+ votes
    5y
    Originally posted by @Kasey Ferlic:

     Is it crazy to invest in a second property within a year of buying our first? 

    Not all. In fact, that is that so many investors have. You have a golden ticket.

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  • Jake DeAtley
    Realtor · Olympia, WA · Member since 2017 · 155 posts · 57 votes
    5y

    Hi @Kasey Ferlic , Congrats on buying at a great time and seeing some crazy appreciation! Did you make any improvements to force more appreciation, or was this all from the general market appreciation? I would encourage you to continue buying deals as long as the numbers work for you! Its a great time to lock up extremely low interest rates. I bought my first 3 deals all within 6 months, so I wouldn't let 2 in one year scare you as long as you feel prepared! Deals are definitely hard to come by, but if you are willing to be creative or work a little extra hard, deals are around. Happy to help if I can! 

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  • Kasey Ferlic
    OP
    Member since 2021 · 2 posts · 0 votes
    5y

    Thanks for these responses. And to be clear, I am interested in buying a single unit apt/condo and renting for cash flow and overall appreciation until we can purchase the next one! 

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