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What to do with $3 million in equity
Hi everyone
My business partner and I have 25 - 30 single-family homes and multi-tenant properties.
- All of the homes/properties have been renovated and have been in service for a number of years (meaning we have a strong history as successful property owners/investors)
- All of the homes are higher-end rentals in very good neighborhoods
- All but 4 homes are completely paid off with no mortgage overhead or LOC debt
- All homes have a very consistent rental history with very low vacancy
- All homes are turning a profit and our pre-door numbers are very good
Because the homes are almost completely paid off, we have a good deal of equity in just sitting around. We would prefer not to sell anything off at this time and plan on owning these properties for a few more decades (although we have considered selling some for various reasons).
A rough back-of-the-napkin calculation yields about $3.2 million in available equity across the entire portfolio.
Q1. What would you do with that equity?
Q2. How would we go about getting cash from the equity?
Q3. With interest rates as they are, and knowing they are probably going to start dropping over the next few quarters, is it best to wait on any kind of finance for a year'ish or are the rates not going to come down enough over that period to make a huge difference?
Thoughts?
Thanks in advance