What to do next with my rental property...

2 Replies

So heres my story, bought my first house in 2013. made the basement separated living quarters.  basement rents for 1200/mo. upstairs rents for 1800/mo. mortgage is 175k and house is worth minimum 450k.  so i feel there is a lot of good things going for me and we have been so thankful, but i am nervous and unsure of my next step in real estate.  currently we live in the upstairs and are thinking about buying a 2nd home and doing the brrrrrrrr method again but not sure i should refinance this house or i guess my big question  is how much do i want to liquidate my assets?  do i take the moneys out of this house and buy 2nd house with cash? or whats my next best move.  i just dont want to get so thinned out and the markets shift and end up lossing everything...

at the same time i could refinance this house take my 185k and find a house for 100-120k still have cash for repairs and rent current home out that would be cash flowing about 1500/mo while i use my construction background to fix and eventually  rent that one....thoughts i guess would be much appreciated for this newby:) thanks!

Congrats on the first purchase and amazing appreciation. I would suggest to refi and leverage the capital to buy a few rentals as you will have the funds for multiple down payments. Buy distressed properties and force appreciation. Even if there is a correction you will still be ahead as you forced appreciation instead of buying a turn key property. Think of this as a long term investment, if you continue to invest you are able to dollar cost average and it wouldn't matter much at what price you are buying the properties. You took the first leap, not continue the progress and grow your portfolio. Always have reserves as you can get into trouble without it.