What do with my equity

Question

Hii . Can someone explain to me how to analyze a deal for Rental . I own a free and clear property and don’t know how to find a good deal y  ok invest in . Also is there anyone that can explain what I should do with my equity and what type of loan do I use to purchase another property

James Derry · Answer

There are too many ways to respond to this.  The common answer to many of your question is that it depends on your strategy and market.  As for your equity, many believe that some type or Heloc would benefit investors, so you can have your equity become liquid.  You really need to make sure you work with a lender that has favorable terms for you though. There are so many products and many do not help what you are trying to achieve.

Warren Powers · Answer

@Kerlous Tadres good answer. I also suggest finding a great investor friendly agent. Interview as many investor friendly agents as it takes to find the one that fits your needs, likely someone who is doing the kinds of deals you want to do and can help you run numbers and will have all of the contacts you might need to get things done.

Arman Ahmed · Answer

@Danny Muro

Hey Danny — owning a property free and clear puts you in a great position to scale.

When analyzing rentals, I usually start with projected rent, then subtract estimated expenses like taxes, insurance, maintenance, management, and financing (if you use leverage). That gives you your cash flow. For long-term wealth, I also like to look at cash-on-cash return and equity growth potential.

I invest in Ohio — mainly Columbus, Cleveland, and Dayton — where price-to-rent ratios are strong and entry points are much lower than in California. A lot of investors from high-cost areas use their equity to buy multiple cash-flowing properties here. Happy to share more on how deals pencil out if you’re ever curious.

Danny Muro · Answer

Hii thanks for your response. If you could walk me through a couple of examples that would be awesome !!! Here’s my situation.

I own 5 properties two houses and a triplex in California. It’s considered commercial because there’s 5 doors on a parcel . I don’t live in any of them they are all rentals and I’m so confused on what to do next to get another house in the same area . Any advice is greatly appreciated! Thank you in advance

Frank Pyle · Answer

Great that you own a property free and clear—that gives you a lot of flexibility. A good starting point is learning the 1% rule and calculating cash flow after all expenses (mortgage, taxes, insurance, maintenance, etc.). You could use a cash-out refinance or HELOC to tap into your equity, depending on your goals. Feel free to DM me if you want to walk through an example together.

Danny Muro · Answer

Yes I do understand there are different strategies. I was thinking BRRRR BUT I don’t know what to do .I also was thinking a HELOC would work but I don’t live in the property . It’s a rental although I did hear I could still use a HELOC but I’m not sure .

What do with my equity

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