How to leverage equity in IRA/LLC to expand portfolio?

[Scott Smith]

Hi Everyone - This is a beginner question, but that's where I'm at.  I recently purchased a single family home in the PNW, minor cleanup and I developed immediate equity, and have it rented with decent cash flow.  I put about 60% down, and have a small non-recourse loan.  The question is this:  Now that this property is moving forward appropriately, how can I leverage the equity I have in that property to expand?  Is that even advisable?  My objective is to build a nest egg that I won't touch for 20 years or so, and I have a pretty small appetite for risk in this portfolio.  Thanks always for your input.

Scott

[Brian Eastman]

@Scott Smith

You are probably locked into where you are for the current time. A refinance into a higher LTV non-recourse loan could free up some additional capital, but how much the lender would go could be limited on a recently rehabbed property. Certainly feel free to speak with your lender and see what is possible. Over time, as the property value after rehab seasons, you pay down the note a bit, and receive additional cash flow, re-configuring the financing on the property might produce more bang for the buck. Assuming the numbers work, you can pull additional equity from the current property as a means to make additional investments within the LLC.