All Forum Posts by: Jason Mayers

I see what you are saying and I did some number crunching.

A $75k Home Equity Loan would be approx $510/mo for 30 years.  I would of course pay it back much sooner than that.  By adding $510 to my Investment Property Mortgage that would be approx $1600/mo and I'm renting it out for $1500.  I would almost be breaking even, minus repairs, which haven't been much over the years.  

Am I thinking of this in the right way?  Or would it still be better to pay it with cash, invest the rest and use equity to potentially buy a 4-plex down the line?

I have an investment property w/ 320k of equity tied up into it. The loan is at 3.25% so I don't really want to touch it if I down have to. I currently rent and want to buy a primary home soon. I also have $200k of cash available that I need to put to work. I'm looking at homes between 575-700k to purchase in a tax free state and want to put 10% down. Should I use my cash available or take out a HELOAN and just pay it off quickly? 

Investment property: $1100 payment / $1500 rent (will increase $100 each year to $1900) , $122,000 owed, $458,000 appraisial.

Income: Net $20k/mo after maxing out 401k/IRA/HSA.

Savings: $200k in a HYSA (would put into index funds if I didn't use for DP)

Credit: 820

TImeframe: 22 years to retirement

No credit card or other loan debt.