All Forum Posts by: Anthony Maffei

 That’s interesting Larry but the issue becomes interest rates to borrow the money wouldn’t make this a valid choice. Am I wrong? 

 Appreciate that. Interested. Mind shooting me a PM? 

Thank you, Chris, for your thoughtful insights—it’s an excellent point to consider the financial and tax implications of leveraging equity. Here’s how I’m currently thinking about it:

The interest rate on my existing property is 3.5%, so I’d like to maintain that rate rather than refinancing the entire loan.

Instead, I’m considering a HELOC at around 6% interest. While the borrowing costs are higher, I’m exploring strategies where the returns could offset this.

For example, I could use the HELOC to purchase a single-family rental property. Hypothetically, if I found a property with strong rental demand, the income could cover loan payments, operating expenses, and generate a modest positive cash flow.

While this example involves upfront risks, the idea would be to leverage my father’s expertise as a contractor to minimize renovation costs, boost the property’s value, and create a long-term asset that appreciates over time. The modest cash flow could be reinvested, eventually allowing me to build a portfolio of income-generating properties.

I recognize your point about needing $2.5M–$3M in cash to consistently replace a six-figure income. My approach isn’t aiming for an overnight transformation but rather a gradual strategy where I reinvest equity gains and cash flow into scalable opportunities. I’m also open to alternative strategies, such as private lending or passive investments in funds, to diversify and balance risk.

Does this phased approach seem reasonable given the higher HELOC rate? Or are there other methods you’d recommend that could align better with my goals?

I purchased a two-family property in 2017 and now have around $500K in positive equity. My goal is to leverage that equity for additional income. I'm a full-time sales professional at a global GSI, so I'm seeking relatively efficient strategies.

Has anyone successfully used cash-out refinances, 1031 exchanges, or other equity-based approaches to boost income? I’m also open to exploring short-term rentals, private lending, or passive investing in funds—anything that maximizes returns while keeping risk and time commitments manageable.

For context, I’d consider leaving my job if this could become a full-time venture that surpasses my current compensation (low-mid six figures). My father is a certified contractor in NJ—he’s built one home, flipped four, and consistently handles upgrades and maintenance for me and his other clients.

I’d appreciate any tips or stories from those who’ve turned equity into a profitable venture. If this isn’t the right forum, please let me know and I’ll remove the post. Thank you!