Updated almost 5 years ago on . Most recent reply
Pulling out equity to fund a long distance investment
Hi Everyone!
My husband and I are stationed in Europe and would like to do a long-distance investment in the Tampa area. Currently, we have one rental (in Alabama) under our belt with 60k in equity. My question is, what do I do? lol How do I make this happen? lol Any tips, tricks, and advice are welcome.
Thank you!
Most Popular Reply
@Vanessa Carter Before you continue to buy properties, what are your goals with the investment? Are you looking for cash flow or appreciation? Do you need the cash flow now? What type of properties are you looking for (i.e. single family, multifamily, self storage, etc.)?
As you will be an out of state investor, you'll really need to emphasize building a great team in Tampa including a real estate agent, property manager, lender, and contractor (may not be needed if you have a property manager that is willing to handle any needed rehab). The order of finding these team members can be difficult; however, since you know you want to invest in Tampa, then try to find the best real estate agent and property manager you can.
I can't stress enough how important it will be to find a great, trustworthy property manager as an out of state investor. They are your eyes and ears once you own the property and a bad property manager can take your investment from profitable to losing money through bad management.
You can certainly do a cash out refinance of your Alabama property to pull out the equity and put it to work in Tampa.
Depending on how much you have saved plus your equity, it may or may not be enough to put a down payment on a property. Don't sweat not having enough for a down payment. If you find a great deal, there are ways to finance the deal whether through hard money, private money, investors, or partners. Focus on finding the right deal.
Good luck!