Investor · Houston, TX · Member since 2015 · 57 posts · 21 votes
I have a strategy that I wanted to get your input on. I currently have a primary residence that is market valued at $360K. I owe about $260K. 6 years from now I believe it will grow really well in equity becuase I am inside the city of Houston, which continues to boom. I am hoping it will grow to about $450K. I wanted to keep this property and use it as a buy and hold. I want to use the equity in the house to purchase a new primary for my family. Would the best way to do this be a HELOC?
Rental Property Investor · Cypress, CA · Member since 2014 · 229 posts · 47 votes
11y
That is one method that i know has been very successful for a lot of investors. However i personally would have to look at the numbers to see if it works. I would want my renter to cover taxes, insurance, mortgage, and property management. Another factor would be your personal income, i wouldn't want to over leverage myself. If the renter wasn't covering those cost. I would instead lower what is left of the mortgage and save money for a down payment to get the return more desirable.