Case Study: Using CA Home Equity to Buy a Turnkey Rental in Michigan (Hands-Off Setup

[Sandy Hu]

I wanted to share a recent deal structure that may be helpful for anyone sitting on equity in a high-cost market.

A client recently:

• Did a cash-out refinance on a California primary residence

• Used the proceeds to purchase a single-family rental in Michigan

• Is closing in early February

What made this work smoothly:

• No relocation required

• Property manager is picking up keys immediately after closing

• Client transitions straight into passive monthly income

• No short-term rental or active management involved

This wasn’t about chasing appreciation—it was about:

• Redeploying trapped equity

• Improving cash flow

• Keeping the setup simple and scalable

I’m seeing more CA homeowners explore Midwest rentals when local numbers no longer make sense, especially when paired with professional management from day one.

Happy to answer questions around:

• Structuring equity deployment

• Out-of-state investing considerations

• What to look for (and avoid) in Midwest rentals

Hope this helps someone thinking through similar options.

[Raylene Pranich]

Hey! Would like to know more about this-- did they use a cash out refi for the 20% down? Or entire purchase of the property?