Cash or home equity?

1 Reply

First time forum poster here. I own two multi-family rental properties and I’m looking toward purchasing a 3rd. However, the first one has some deferred maintenance and shoddy repairs/updates done by the previous owner.we estimate we’re looking at about 25k worth of work by a contractor to get it done. We have cash to pay it, but also don’t want to deplete our cash reserves and miss out on a buying opportunity? Is it better to take the equity and pay the loan with interest off quicker perhaps? Maybe my question is too vague, but what is the BP community’s opinion on how they go about such a thing? Thanks for your help!

Why would you spend your cash on a one time use...that doesn't gain you anything (paying off mortgage).  If your property has positive cash flow, your tenant is already doing that for charge to you.

Keep your money moving forward.

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