Need help i have 50k but i am stuck

[Sade McLean]

so i have 50k....1 airbnb home that needs renovation to make more money....3 other rental properties..1 is paid off the others has mortgages...I want to refinance one property in order to purchase a multifamily home in which i havent found yet...should I only have 50k liquid cash though, everything else is tied up...what should i do? I do want to invest in my airbnb to increase a little more revenue however I dont want too put all of the 50k in there ....the point is i need more income, im not making enough with what I have any suggestions???

[John Leavelle]

Howdy @Sade McLean

You need to sit down and write out the pros/cons on taking action with each property.  Something like this:

Cash Reserve = $50,000

A.  AirBNB property - Needs $$ update to increase rental income to $$$

B.  Rental #1 - Paid-off earning $$$ income.

C.  Rental #2 - Mortgage earning $$$ income.

D.  Rental #3 - Mortgage earning $$$ income.

E.  Future purchase - $$$$ All-in cost

Questions

1. Where did the $50K come from? Vacancy, Maintenance, CapEx withholding? Cash-Flow income? Other.

2. How many need CapEx updates in the near future? Estimate of Cost? Are you currently saving for those costs? Is that part of the $50,000?

3.  Have you started analyzing for the new property acquisition?  Budget?

Options:

1.  Use money from $50K reserve to update Property A.

2.  Get a Line of Credit to use for the update

3.  Home Equity Line of Credit for Property B to use for updates/repairs/help purchase new properties

4.  Get a Cash-out Refinance Loan on Property B to help purchase new property.

Then start going thru each to decide what is the best use of the Cash Reserve and if option 2 - 4 are possible.  Remember if the Cash Reserve's original purpose was to cover any of the items in Question 1 you need to think about it before using it for something different.