Own Free n Clear or Debt and expand

Own Free n Clear or Debt and expand

Member since 2024 · 7 posts · 1 vote

Hi Fellow REI Comrades. Interested in some seasoned investor mindset here. For the sake of this conversation, I have four out-of-state rentals in Cleveland under management (one duplex and two SFR's), with roughly $735k cash invested (no debt) and ROI is approx. 7%. Im considering taking $150k out of the duplex to put 50% down on another duplex that costs (appx.) $300k with $1800 rent each side. Running some quick after debt numbers, it appears my new cash-flow (on both duplexes) will be about the same as current cash-owned unit, but with the additional property tax/depreciation/appreciation advantages. I believe this monetizes to around $18k/yr. Is the extra exposure, etc.. worth it... I'm 67 and cash-flow is king at this point.

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  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    11mo

    I don't think that's a bad idea. Sounds like you ran numbers and it makes sense. Obviously at 67 your goal should be to limit debt/risk but you still own quite a but free and clear so it'll be OK. Are you going to do a line of cred/HELOC or cash out to access the equity?

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