New to Real Estate

[Marco Solis]

Hello,

I recently purchased my first investment property. This is my fourth house purchase, but the previous ones I renovated to live in. I paid cash for this property. I will have approximately $200,000 invested when it is complete. Similar homes in the area are selling for $270,000. I would like to end up generating "passive" income by renting, but not sure if I should sell this property to invest in a multifamily or rent, take out a loan on this to purchase the multifamily. Any advice would be appreciated.

[Nathan Guan]

Hi Marco, 

Congratulations on the successful project! You're in a perfect position.

Selling gets you one new property. Refinancing gets you two.

You can likely pull most of your $200k back out via a cash-out refinance, leaving your capital in a property that now pays for itself. You then recycle that $200k into your multifamily purchase.

Why give up a great asset when you can have it fund your next one? This is the core of scaling a portfolio.

The numbers on your specific property will tell the tale. Happy to run a quick scenario for you—DM me if you'd like to see the math on a refinance.

Best,

Nathan