What should be my next move?

[Carlos Alvarado]

Afternoon Biggerpocket friends and memebers,

Here is my situation. I bought my first investment property with all my capital. So its free and clear. I bought it for $15k put $15k into it so im at $30. House that have compareable comps have been selling for $55.Im renting for $650 a mnth. So im trying to get capital back by getting a cash out on it, but no one is wanting to do cash out on that low of a loan. What there telling me is to pull a line of credit on my primary thats worth $110k and my primary is free and clear also. Should i make that next move? My thoughts were well im a beginner at this so what am i going to do with $80-$90k? Should i use it to buy another free and clear investment or should i spread the money out and use it as 20% down on 3-4 investment properties? Should I stop wasting time trying to cash out a low loan and just pull a heloc on my primary? What should I do?

Thanks in advance

[Robert Leonard]

@Carlos Alvarado only you can answer this one. You clearly understand the difference in the two options. Will either one of these cause you to lose sleep? If not, the leveraged option, (putting 20-25% down and financing the rest) is the mathematical answer to the question of which is better. But that's just math. You know which way will allow you to sleep better, we dont'?

Me, I'm a strategist and I have no problem sleeping well while using leverage to maximize my ROI. I sleep well knowing that my money and my credit are working for me while I sleep like a baby!