Sell, refinance, or home equity to fund real estate investments?

[Nicholas W.]

I’d like to get started with investing in property, but I’m at a point where I don’t know which route to take regarding whether to sell my house (and move back with parents), refinance, or take out a home equity loan to fund my real estate investment plans.

A little side note, I purchased this property two years ago. I am currently 24 years old.

Here’s a little information on my current property (primary residence):

Purchase Price: $130,000.00 

Mortgage Balance: $99,937.34 

Market Value: $180,000.00

Market Location: Spring Hill, Florida, USA (Tampa Bay Area)

Of course, the best scenario would probably be to move back with my parents, but, truthfully, I do not want to move back with my parents and siblings; however, I would be debt free and generating income from my primary employment.

I feel that the downsides to selling my home is that the market in my area (currently a seller’s market) is extremely hot and, by holding onto the property, there is a likelihood that the value of the property will eventually increase substantially over the next few years.

If you were in my position, what would you do? I would appreciate some input.

[Ally Kumar]

@Nicholas W.

I am in Pasco county and have rentals in Spring Hill. While I think, housing prices there will go up, I am not sure about sustantial increase there. If it were me, I would pull my equity out, move back with parents for short term with a plan to househack in the near future. You can get a duplex there for about 150K, live on one side and rent other side. You can also rent out rooms in your house to increase your income if you don't want to sell at this time. Good luck. Feel free to reach out if you want to grab coffee to talk real estate. Regards Ally