HELOC or use cash for renovations
Hey BP Community,
You all rock!
My wife and I purchased an MFU in Watertown, Ma. at a great price point (a family friend gave us a steal) and have already amassed $100k in equity (without doing a thing) in addition to our downpayment. Unit one is redone already and is currently rented out. Unit two needs updating i.e. kitchen, two bathrooms, light fixers, flooring, and painting before we move in. According to a realtor friend of mine once we update the second unit we will add significantly more equity to our home. Our goal is to BRRRR and buy another property in Watertown within a year. Question; should we use the equity to update unit two through a HELOC then pay it off to then do a cashout REFI to buy another MF, or should we use our own cash to preserve all of the equity for our next purchase? I hope this isn't confusing.
Any advice is appreciated!
Peter