Tools to leverage your money to buy more properties?

Question

Hello, Does anyone know of tools that you can use to leverage your current investments and cash to buy more properties? I own 2 condos in Logan Square, Chicago and am looking for a 2flat in the area to buy. I have a HELOC on my investment condo and am debating to use cost segregation to make my money work for me more.

Does anyone have any other tools to use to help your money work for you more?

Eric M. · Answer

Have you asked your accountant? If you are talking about doing cost seg studies, he would be your guy. You don't want to do that on your own, I don't think.

Compare the cost of doing the study properly vs how much you will save....and how long you plan to hold the property before it is recaptured anyway. A cost seg approach does increase audit risk considerably (I have been told). If you do it right, no big worries, but is that really what you want to deal with? Are you sure you know how to do it properly? Are you even sure your CPA knows how to do it properly? I bet lots of them don't and I wouldn't have any idea if they were doing it properly or not.

I don't think it is going to make a meaningful impact with 2 condos. But maybe.

If you are trying to max out your money, leverage is the tool. Of course, it can be a dangerous tool. And 1031's down the road.