Use equity in my home to pay down my home or invest in a rental?

[Dillon Jay]

I have a home in Southern California that I bought for $225k. It has appreciated around $290k in the two years I have lived here. I would really like to purchase a rental using a Heloc strategy, but I'm not sure if it's a good time to invest my equity or if I should use it to help pay down my home value over time. Any suggestions?

[Tony Kim]

Whatever you do, don't pull equity from that prime La Quinta property to invest in C or D class property in the Midwest. I would even be cautious with properties labeled as B class from the folks trying to sell you the property. Do your research, take your time, define your goals. There is no rush....... much better to do nothing than to make a mistake. Also, realize that CA newbies and their "what should I do with my money" mentality can be somewhat of a target here. If you buy turnkey, just know what you're getting into.