Pull out appreciation to break even and/or buy 2nd property
Hello BiggerPockets friends,
I guess I need some help in understanding the benefit and strategic advantage of cashing out appreciation on a property and using it to buy another property.
If I appraise a property, I am borrowing that against another loan to pay some of the original mortgage and/or buy second property? But what I do not understand is you still have to owe on another loan.
Also, I want to know if this strategy not only helps in buying another property. But mainly to contribute towards my first property principle to break even when I rent it out. I guess my question is is this the best strategy or are there other strategies to break even on the first property to be able to be ready financially to buy a second property and keep the first one. I guess I do not see it any other way except putting in your own cash.
Thanks,
Kapil