Validation to Take the Next Step
Hello!
Working on making my Vacation Home/STR that 'pays some of the bills' but doesn't 'cash flow' into a Cash flowing STR. I'm also trying to get organized as I already have a trip planned to view and purchase a second property that will be our second STR investment. This time we know this will be an investment right from the get go.
So I'm doing (3) things and just need to hit the go button.
1.Our vacation home is currently on a 15 year mortgage and we have 70% equity. I am going to refi to a 30 year loan.
Step 1 will take us from -$457 monthly loss to +$258/month cash flow.
2.Drop Vacasa as Property Manager and go to Self Management.
Step 2 will then take us from +$258 monthly cash flow to +$674 monthly cash flow.
3.Apply for a HELOC and use that equity for home improvements and go from a 2/1 to a 3/2.
Step 3 will get us to > $1000/month cash flow.
Beyond Step 3
1.Use this home's Equity/HELOC as a way to fund future down payments. Borrow, Repay, Borrow...
Open for Feedback (validation and/or what am I missing) that these next steps are the right ones.
Thanks!