what would you do with 500k equity free and clear?
Hello.
I own a condo in Long Beach, CA, free and clear, that is worth around 500k. I have good tenants in it who pay rent of $2290/mo. I've been getting antsy to reinvest but don't have the savings to do it. What would you do? Would you refinance this property with cashout and use the cash as a downpayment for a SFH that would increase in value more than a condo? Would you sell the condo and use the full 500k as a downpayment on an SFH? My markets are very expensive: Southern California, Long Beach and Santa Barbara areas in particular. I would love to get a duplex to rent long term in one and short-term the other. I could transfer my tenants into the new place, or not (my markets are highly rentable). WWYD??
Thanks in advance.
Most Popular Reply
@Jennifer Gardner I would not sell any property in CA that is cash flowing. You have the best of both world--an appreciation asset that is also producing income. I would pull money out in a refi and invest in more affordable markets in the Midwest. Personally, I like Indianapolis, Kansas City and the Quad Cities where you can still get good COC returns.