What do I do with all this equity?
Hey Moguls,
Newbie looking for advice on the best use of the ~$170K in equity I have in my SFH in East Oakland. I bought it in late 2015 and my home's value has gone up a lot. Currently, I live in one room and rent out the other two to friends, whose rent is helping to pay off the ~350K I have left on the mortgage. (It is not technically "cash flowing," but their rent pays most of the mortgage.) The house is in quick walking distance to the Fruitvale BART station.
I'm interested in using the equity to buy some other investment that WILL cash flow, but I don't know what. I could possibly qualify for another conventional mortgage, I could take out a HELOC to put a down payment on something (But where? Oakland is so expensive. Do I go out-of-state?) but I don't know. Or I could build a tiny home in the back of my lot, an ADU, or add to the house. Or, I could wait and see if the house's value goes up even more.
Any advice?