Rental Investing! To sell or not to sell for more investing money

1 Reply

So this is my question to you pros. I have a home I currently live in with about 80k in equity in it. Bought back in 2011, rented it out for a few years, divorced, moved back in. The current payment is 905.00 a month with PMI still. I also have about 50k in the bank to invest. I'm 32 work a regular job and also own a side business. My question is in order to invest and obtain more financial freedom.... do I refinance the house and pull the cash to invest, refinance to home to a lower rate and no PMI for a 700.00 dollar payment (house rents for 1500.00 a month), sell the house and take the 80k and buy multiple rental properties with 20% down and also buy another home to live in? Any advise would be appreciated. Thank you!

The old me would have said you should leverage to the hilt, but I’ve changed and so has the market. Definitely get rid of the pmi, and refi. You probably aren’t going to find a better deal than what you got in 2011. If it’s an easy rental I wouldn’t give it up unless you have something really great lined up.
That being said, I’m also of the mind that you will never time the market perfectly, so it makes sense to sell at any point you know you are coming out on top. What’s your side business? Would a little cash injection boost it? I would look at that too. Or find another small business that spits out money. I bought my first in 2009. Haven’t bought anything since 2015. I’m currently selling most of my stuff. I’m paying off all my debts and padding for the next downturn. I flip houses with other investors but don’t put my name on it because I don’t want to get stuck. I do the rehabs and either split profits or take the gravy on the backend. There are a ton of options out there. I also have a PM company, lots of ways to make money in real estate.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.