Looking for advice on my next move
I have 3 properties that total about 800k in equity with no mortgages. If I would like to expand my portfolio by 1-2 single family homes in the 170k-200k range with less than 50k of my own money, what would you do? Thank you!
Most Popular Reply
Congratulations! Having three properties that are free and clear puts you in a wonderful position and gives you a lot of flexibility. From my experience, I don't think there's one right answer. It really depends on your goals and how comfortable you are taking on debt again. Just because you have the equity available doesn't necessarily mean you need to use all of it. I'd sit down with a trusted lender and look at the different ways to access that equity, then compare the costs and decide what makes the most sense for your long-term plans. I'd also make sure any new property still cash flows well with today's numbers. I'd rather add one or two solid rentals that I can comfortably hold than grow faster and take on more than I'm comfortable with.You've already accomplished something many investors are working toward. I'd take your time, look at all your options, and choose the path that best fits your goals.
- Denise Supplee
