Updated 2 days ago on . Most recent reply
Using equity to grow my portfolio
I own two properties…
1. Full time residence. Paid $384k. Put 25% down on it. $1620 mortgage payment. Appreciated $15k since buying
2. Rental property. Paid $90k. Worth ~$270k now. $1850/month rental income. $49k left on mortgage. $640/month mortgage payment
I'd really like to acquire some more property, whether it be a single unit short term rental, multi-unit, etc…try a BRRRR… or buy an established business. I have a bunch of ideas that I'm kicking around…
But, I’m wondering how realistic it is to use the equity from these two properties to move forward with some of these ideas. Does the risk outweigh the reward?
Most Popular Reply
I'd touch the rental. Doing a line of credit/HELOC is tougher on investment properties but can be done. Another is you do a cash out refi. This would change your cashflow so run the #'s. Another option for the rental is doing a 1031 exchange and roll it into another property(ies). BRRR has a lot of moving parts so establish a team first and a good contractor. It's tougher now to BRRR with rates, construction so keep that in mind
- Caleb Brown