Cash out refi for my first deal?

[Lance Leonard]

Hello BiggerPockets!!!

I am interested in starting my REI career and found a deal that perked my interest.

I don’t have a ton of cash on hand but have well over $100k in equity in my personal home. Is it a bad idea to do a cash out refi on my personal residence for my first deal? Not really interested in taking all of the equity out, looking at around 50-60k. Any and all info is appreciated as I am new to this and looking to dive in!

[Darius Kellar]

@Lance Leonard Taking on debt was tough for me to come around. But what totally changed my mind was really Facebook. My third year into RE, we posted a house for rent on Facebook. At that time it was my first time renting a property utilizing something else other than word of mouth marketing. When we posted the property to FB I got so many phone calls and messages that it was literally breath taking especially considering I inflated the rent price. So that's what ignited me to get more financing and buy anything and everything in my area. Many are afraid of investing in low income areas but the rent margins and demand for rentals is ALARMING here.