Analysis for Rental Investment (Please Help!)
Hi! Everyone,
I will appreciate some advice on the following scenario. I have 40k to invest in a new rental but not idea how to proceed with the analysis and numbers. I'd like to buy a Townhouse in Miami and my overall financials are as follow:
I own a Townhouse already, paid off (145k).
I own a house with an mortgage of 355k.
I have 40k in cash (+ 1 year of security cash).
I was wondering if a HELOC on the paid off town house would be a good strategy or just keep saving money? Someone mentioned to me the HELOC as an opportunity to buy with cash and get better deals.
And the last question: I understand that prices are climbing fast and a peak would be reached in (2018-20)? I don't know if buying now is a good choice or just wait 5-7 years until prices decrease again? In that case the opportunity cost of X years of loosing income from rental would be high.
I will appreciate any advice. Thanks! Javier