How to draw out equity from primary residence???

1 Reply


I am currently living in a house while renovating it top to bottom in order to force appreciation so that I can either; a) sell the house and buy an investment property or, b) force appreciation and draw out equity as a loan in order to finance a rental property.

I am curious what the best route would be to take as I would need to purchase two properties if I sell the house, but only one if I draw out equity. What is the process i would have to take for plan "b"? do I call the city to get the house reassessed? or do I call my bank to come look at it (when it is done), and is the equity loan equal to the difference in what the house has been appraised by the city before and after or the difference between what i owe on my mortgage and the re-appraisal?

Thanks for any help on this matter.


You can do a cash-out refinance up to 75 or 80% of the house value depending on the lender. There may be some restrictions on timing for Fannie Mae loans depending on when you bought the house. 

You might also be able to do a HELOC instead. You'll want to look at the options for both. Consider your goals for your residence as well as your investing.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.