I currently am stationed outside of the USA and am wondering what to do with my equity. I own 2 homes in the DC area and have a total of about 400k equity on one and 100k equity on the other. I make about 1k a month profit off the homes and am wondering what my next step should be. I am thinking about investing in cheap homes in Alabama and my goal is long term cash flow. What is the most conservative methods for tapping into the equity and slowly building my property portfolio.
You could sell, or do cash out refinances. You will need to leave 20-25% equity in the property on a cash out refinance. Also keep in mind the price on a refinance appraisal is typically going to be more conservative than the actual market value of the property.
I’m a big fan of HELOCs. Depending on the bank, set up fees can be minimal. Some will even give you a credit line up to 90%+ of home value.
It would allow you to access a lot of that equity to use for down payments or cash buys.
The downside is that HELOCs are usually floating rate.
That’s probably the easiest way to minimize fees, keep your properties performing, and expand the portfolio.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.