$100k in primary home equity and $30k privatey saved–how should I invest it?

[Johnny Self]

Hey everyone,

I bought my loft in 2021 and did some renovations to it over the last 2 years. With the property value + renovations, I'm estimating my appraisal that I just ordered will put me between $75,000-$100,000 in equity. I'm currently on the waitlist to rent my place out (should be a few more months of waiting) and I have a down payment for my next place secured. I'm wanting to rent my place out because It can bring in some great cash flow. (it's in an incredible area!)

My overall goal is to have a few rental properties underneath my belt in the next few years and eventually walk away from my full-time job. I was planning on renting my loft out long-term (HOA rules), and buying a "fixer-upper" for a decent price, fix it up, and put in on Airbnb to secure my first short-term rental property next.

After that, I want to let the 2 properties generate $ on their own and use those profits to continue investing. 

Any experts out there have any opinions on this kind of a plan? What would you do if you were in my position? Could a HELOC be a smart lever to pull? Any advice would be great!

[Randy Rodenhouse]

I agree with @Nathan Gesner that many want to suck out all their equity from their house and buy another but remember the end game is not how many houses you have but how much you are making in passive income. Yes you reduce your overall risk with more property (if one goes down you have the others to support) but best to have each able to stand on it own with excellent cash flow and some equity for any rainy days or downturns.  

At some point when you have more properties you may want to consider selling with owner financing or on lease option to get a large amount down.