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Updated almost 6 years ago on . Most recent reply

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Luka Milicevic
  • Real Estate Agent
  • Nashville, TN
2,188
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2,640
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The return on equity debate

Luka Milicevic
  • Real Estate Agent
  • Nashville, TN
Posted

I think a lot of us that have invested the past couple of years in markets that have had mid-high appreciation are in this position. 

The return on equity being really low.

I'm not talking about return on investment, but the actual equity you currently have in the house. 

I know the two ways to tap into this are to sell or refinance and cash out. 

A lot of folks have said to refinance the loan, pull the cash out and invest in more properties. This makes all the sense in the world, my only problem is where??? I pull cash out of a property that has appreciated and I get a ton of $ out, but now I'm looking to allocate it in a market that has appreciated. So I'm cashing out to buy OTHER appreciated property? 

Unless, you take the money out and invest it in a completely different, less expensive market. 

Thoughts???

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