is it worth mortgaging my primary residence.

[William Chrisman]

Quick and to the point!

I purchased my home last june with cash, a foreclosure for 54k its worth about 180k. I have one rental property with a mortgage that breaks even and only about 6k equity, I have a guest house on my property that I will be renting in the next six months once i finish the much needed repairs. I'm hungry for another rental property. Is it worth mortgaging my primary residence to get cash to purchase more properties? I really like not owing anything on my home but Im ready to find another property.

[Joel Owens]

My answer would be debt service is cheap right now. Equity sitting in a property is dead equity losing value year after year due to inflation and not performing.

If you can most of that equity to work for much higher than borrowing costs plus get cash flow and tax write off then it's a no brainer to me.

Some people do not like carrying debt at all but to me there is good debt and bad debt. Not all debt is created equal.