Dead Equity - How much money do you leave in rentals?
Hello Bigger Pockets!
My main question is how much money do you leave in your rentals? I've got one rental property worth $280k, about 60% LTV (115k in equity). I just closed on my first "Live in Flip" and I'm moving in there next month (this should be fun). I'll then be turning this house into a rental property. This one is worth $400k, about 55% LTV (180k in equity). If I do REFI, I should probably do it before I move out? (thinking yes)
I'd love any feedback. I'm not scared of risk and have told myself that I should just pull money out of both up to the 80%. Then take that money and buy one or two more rentals. What does everyone think about this?
Thanks!
Josh Bustle
Most Popular Reply
Old dude here. Once I had enough rental income to cash flow life, I went to 100% dead equity. Personally, debt bugs me and I prefer not having a dog in the fight regarding what the markets are doing. If we hit another good buyer's market E.g. 2008-2012, I might leverage up 20% or so. Not during a seller's market though. I wish you good fortune.