I have two properties. What should I do next?
Hello All, members and admins. First Post. Pleased to have found what seems to be a comprehensive site! I hope this is filed appropriately.
I am 46. I have 50% equity in my residence valued at $300K. I own 100% of a rental property valued at $150/160K. It rents for $1100/month. I have no debt outside of my residential mortgage. Currently I make only about $30k but I do have approx 50K cash on hand. My credit is good to excellent.
I am very risk averse and my priorities as I look at a next step are as follows:
First- Safety. I must not lose money. I feel like I am too old to recoup.
Second- Growth and Return. I do NOT need to hit a grand slam. I'd prefer a series of single base hits every year or so.
Last- Liquidity. I DO not need to access my cash or get my money out in the near to medium term.
Although I'd love to supplement my monthly income, if forced to choose, I'd prefer long term growth over immediate cash flow improvement.
Here are some things I'm considering:
Replacing my residential mortgage with a first position HELOC and aggressively paying that down. Likely it will still take 5-8 years.
Collateralizing current property to get a loan for a third purchase. Possibly another SF house, possible a small apartment, possibly commercial.
I;d hope to avoid selling but of course, would not rule it out in the event of a great opportunity,
Given all of the above, what might you suggest? Thanks so much for reading!