What would you do with 150k in equity?
Trying to get the most out of all my equity I've gained. I currently own 3 long term rentals. I'm planning on getting a 2 unit to live in and airbnb. But I feel I could go big and get a big multi family. Wondering if I could get a 3-5% down loan? Already got approved for a 20% down and in proses of refinancing all properties. Just need some advice or ideas from other investors. Thank you!!
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#5 All Forums Contributor
- Plymouth, MI
I don't think you're following what I'm saying.
Right now, your equity has a face value of 150k, and a property value of 510k. That means every dollar of equity is worth 3.4 dollars in PV (property value). If you sold the properties, and took the 150k in equity out as profit, you could use it as a 20% down payment which would mean the properties you could buy with it would be worth 750k. That means for every dollar of equity would now be worth 5 dollars in PV, instead of just 3.4.