Own condo outright - What now?

4 Replies

I purchased my condo 2 years ago for cash ($490k, approx current value $550k) and it is my primary residence. It's in a killer location and the other units in the 12-unit building are always full rented or owner dwelling. 

My question is how to make this asset work for me. I could rent it out, but then I'd have to find somewhere else to live (aka mortgage). The property is increasing in value and projected to continue doing so, but it feels like a lot of money tied up when I could be more innovative with financial prospects.

Any recommendations for ways to capitalize on owning outright? Many thanks! 

You could refi it at <4% as your primary residence and then use that money to buy rentals with 20% down. Then you could rent out your condo in a year and buy another residence with 5% down. That's what I would do, but I would be nervous right now in Denver with the market so hot.

you could do a cash out refinance on the condo. if it appraises at $550k you could get a mortgage for 80% of that value, $440k you could use that money to buy one larger or multiple smaller multi-family properties with 25% down payments and 30 year fixed mortgages. this would give you nice monthly cash flow.

@Catherine L. I like the refinancing option as well. The interest expense is also deductible if you use the funds to buy rentals. 

Great stuff! Thank you so much! I will keep everyone updated with the direction that I decide to go. Happy that I found this high-quality forum. 

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