26 years old, What to do after paying off personal property?

[Michael S.]

Louisville KY resident here. Just looking for some advice on what I should do next?  My personal property is paid off so I am literally debt free. I am not tied to my home and will not live here for a long time (not against renting it out). just looking for some guidance on what I should do real estate wise? basically for those of you who are successful real estate investors what would you do in my shoes?  Thank you

[Fred Stevenson]

Hey Michael, 

One thing you could do is refinance your personal dwelling (80% of equity) and use that money to buy your first rental property or properties.  You will get a better rate than you would by using the prospective rental home as collateral on the loan.  However, if you plan on moving out of your own home,  you would need to do this before you put it on the market.  

I'm following this strategy myself.