Pay down rental housing debt or keep cash for another deal
Hello BP gang,
I have a question for experienced investors on what to do in this situation. I currently have about 30K cash to invest in my next rental property. I bought my first SFH rental in feb of this year 2020 with 20% down and conventional financing. I currently have a tenant in place and am cash flowing after all conservative expenses about $300 per month. That rental I feel is going well and I am ready for the next. The problem is I dont really want to throw 20% cash down again for another property, due to this virus thing. I would like to hold onto my cash as a safety net atleast some of it. So my question is should I put that cash toward furthering my equity in my first rental property? Allowing me to potentially set up a HELOC on the house so i can draw from it for down payments on my next house? Or should I just put that cash toward another property when I can afford it.
I have a question for experienced investors on what to do in this situation. I currently have about 30K cash to invest in my next rental property. I bought my first SFH rental in feb of this year 2020 with 20% down and conventional financing. I currently have a tenant in place and am cash flowing after all conservative expenses about $300 per month. That rental I feel is going well and I am ready for the next. The problem is I dont really want to throw 20% cash down again for another property, due to this virus thing. I would like to hold onto my cash as a safety net atleast some of it. So my question is should I put that cash toward furthering my equity in my first rental property? Allowing me to potentially set up a HELOC on the house so i can draw from it for down payments on my next house? Or should I just put that cash toward another property when I can afford it.