All Forum Posts by: Ginger Olinghouse
Ginger Olinghouse has started 1 posts and replied 19 times.
Post: What to do with rental equity
- Posts 19
- Votes 7
Thank you for the thoughtful reply. I can avoid capital gains if I sell by fall of 2026 because it was my primary home prior to moving so that is part of the reasoning to sell. I may reinvest or pay down my primary. It depends on what interest rates do and how the year goes. I will most likely list my home to sell in the spring. Most people are advising that I sell it to unlock the capital.
Post: What to do with rental equity
- Posts 19
- Votes 7
Thank you for all the advise
Post: What to do with rental equity
- Posts 19
- Votes 7
Quote from @Jackie Carmichael:
Ginger — thanks for laying out the numbers, this is exactly the kind of decision a lot of investors are facing right now. You’ve got strong equity in the rental but a tight spot with reserves and a high-rate primary, so the question is really about where that equity works hardest for you.
Option 1: Sell & Pay Down Primary
• Eliminates capital gains since you lived there.
• Frees up a big chunk of cash to reduce your 6.99% mortgage (a guaranteed return, in a sense).
• Downside: You lose the rental asset and its long-term appreciation/ADI potential.
Option 2: Hold & Raise Rent
• Even at $2,100, it’s under market leverage given the equity you have locked in.
• Great long-term loan (3.5%), but not much cash flow upside with current rent.
• You’re equity-rich but cash-poor, which makes scaling tougher.
Option 3: Sell & Reinvest
• Trade into duplex/quads where you get better cash-on-cash returns and diversify income.
• Since you’re a Realtor, you save fees, which makes this cleaner.
• This is the “scale” play, but you’ll want to shore up reserves first so you’re not stretched thin.
Option 4: ADU Long Play
• If you had capital, adding an ADU could transform the deal. But given reserves are tight, this feels like a “someday” option, not a today option.
My Take:
If you need liquidity and stability right now, selling and paying down your primary is the safe move. If you want to stay in growth mode, selling and rolling into a small multi could balance cash flow with long-term wealth. Keeping the house only really makes sense if you’re committed to it as a legacy hold.
On my side, I help investors explore financing paths like cash-out refinances, DSCR loans, and bridge-to-multi structures. That could give you a way to access equity and redeploy it into higher-yield properties without draining reserves.
Curious — are you leaning more toward shoring up your personal balance sheet (lowering your primary mortgage) or staying in growth mode with more doors and cash flow?
I am leaning towards selling the rental. Although, I am kind of hoping that I earn enough in commissions between now and spring to pay down my primary home to waste less money in interest and be able to save my rental. We'll see what interest rates do and if I can get myself in an equity position on my primary home to be able to refinance it by spring.
Thank you very much for the thoughtful response.
Post: What to do with rental equity
- Posts 19
- Votes 7
Quote from @Mica Moore:
Switch houses with cousin & raise his rent on the new lease.
Or sell your primary, evict cousin & convert rental into your new primary.
If you do choose to sell the rental, check to see if loan is assumable -- that is something attractive to advertise in this buyer's market.
The rental 50 minutes away from my husband's job and the kids school. The primary house is worth 315000 or so. The rental is worth 375000. If we sell the rental and put all the proceeds to the primary we will only owe about $50,000. I have thought about the option of moving back into the rental though. I loved that house and the yard. I don't think my cousin would move into my current primary home, especially at a rental rate that wouldnt be cash flow negative.
Post: What to do with rental equity
- Posts 19
- Votes 7
I have to sell by the fall of 2026 to avoid capital gains. Most people on the forum are saying to sell. I think it will list it in the spring. It was a hard decision for me because I have some emotional attachment and the interest rate is so good on it.
Post: What to do with rental equity
- Posts 19
- Votes 7
I have done almost all of my own maintenance and all of the management. There isn't an hoa. Noi last year was 16000. P.i. was 7379, but your right, I need to add in capital expenses because I know I dont want to do the roof myself when that comes up. We are very handy though. I probably do need to sell it.
Post: What to do with rental equity
- Posts 19
- Votes 7
Quote from @Ginger Olinghouse:
Quote from @Jaycee Greene:
Quote from @Ginger Olinghouse:
2047 is around my mortgage payment with principal and interest for my primary residence. With principal, interest, taxes, pmi, and insurance it is $2250. NOI on rental was about 16000. I raised the rent from 1700 to 1800 in June so this will go up.
@Ginger Olinghouse That's great. If you could refi the rental property for $170k (cash out ~ $65k), would that be enough to replenish your reserves?
Yes, I could pay down my primary mortgage with 50000 and keep 15000 for reserves. If I pay down my primary by 50,000 I could refinance when rates come down.
Post: What to do with rental equity
- Posts 19
- Votes 7
Quote from @McFarlen Jean-Pierre:
1. Get a Heloc
2. Draw on it
3. Do a fix and flip
4. Call me to get it done 7864247296
Seems risky and the heloc would have high interest rates. I don't think I have enough reserves for this idea, but thank your for the suggestion.
Post: What to do with rental equity
- Posts 19
- Votes 7
The mortgage taxes and insurance is $900 per month on the rental. It cash flows pretty well because of this. It is my primary home that is the problem. Its principal and interest is $2047. I think that is where you got that number, but you are right that the rental isn't performing that well in comparison to the equity that is in it.
Post: What to do with rental equity
- Posts 19
- Votes 7
Quote from @Jaycee Greene:
Quote from @Ginger Olinghouse:
2047 is around my mortgage payment with principal and interest for my primary residence. With principal, interest, taxes, pmi, and insurance it is $2250. NOI on rental was about 16000. I raised the rent from 1700 to 1800 in June so this will go up.
@Ginger Olinghouse That's great. If you could refi the rental property for $170k (cash out ~ $65k), would that be enough to replenish your reserves?
Yes, I could pay down my primary mortgage with 50000 and keep 15000 for reserves. If I pay down my primary by 50,000 I could refinance when rates come down.