$100K in Equity, so many options, suggestions...?
I bought a property with a detached shop on a USDA 0% loan for $198k last year. Mortgage is $1200, renters pay $1400 for a 3bd / 1ba, 1364sqft house. I turned the 500sqft shop into a livable space for myself. I borrowed $20k from my buddy at 8% interest to finance the shop build since it was just a pole building shell. I owe him $15k currently. So many options and paths to take that I am not sure what the best option(s) would be. Appraisal came back at $305k as I am looking at getting a HELOC to pay back my buddy ASAP and fix up the inside cosmetically to get $1600 for rent. I could potentially get $750 rent for the shop as well. House was built in 1939. Thoughts?
Morgage - $1200 +
Loan - $ 488
Total - $1688 -
Rent - $ 1400
Expense - $288