How to capitalize on my home’s equity?

[Jarron Vosburg]

My wife and I own our home in Nashville, TN.  We currently have $110,000 of equity and I’ve been thinking about scenarios in which to capitalize on this position.  Real estate in Nashville has never been hotter and, while no one can predict the market, I have concerns about a potential economic pull back and losing value in our home.  We want to begin to invest in additional properties, but I’m unsure of how best to proceed.  A few options I’ve considered are:

1.  Sell the house for cash, rent somewhere until / if the market pulls back, then start adding property(ies) while everything is low.

2. Continue to sit on the house, build even more equity, and open a HELOC to purchase a duplex rental.

3.  Rent out our current house, open a HELPC to purchase a duplex rental, live in one of the units and get the other unit rental ready. 

I’m sure there are strategies I’m not even considering, so curious to hear what others think.

Thank you!

[Charlie Shew]

Jarron,

I located in Lebanon, TN. I am sitting right about where you are at and want to do the very same thing. I need to proceed cautiously because my wife is not that excited about owning rental property. My plan is to buy a new home and rent my old one.

Your right about our market, it keeps getting hotter. I do a market report each week for Nashville Metropolitan, Wilson and Sumner County. While in the fall/winter months a lot of realtors were talking about a "shifting market" and as a realtor, we need to be prepared for a downturn. The funny thing is that was completely opposite to what each of my reports was indicating. I am not a doom and gloom person and I plan to proceed with my plan to purchase our next home and rent our current home.

Are you planning on doing the BRRRR strategy with a duplex? Are you on a drip campaign, this is where you will get an automatic notification if a home that meets your criteria is listed on the MLS.

Here is the list of all multi-family homes in and around Middle Tennessee. If anyone does want to get on my auto notification just message me and let me know what you are looking for.

Charlie Shew

Multi-Family Homes for Sale in Middle TN