Selling or holding my personal house

[Ramon Cervantes]

   Hey anyone! I had planned to sell my personal house and use some of the money to put 20% down on a new home and the rest to begin my real estate investing (flipping). The house I planned to buy with the 20% down would be my personal residence but would get fixed then turned into a rental eventually.

   Well, I though, why not instead borrow from it the equity I need and eventually turn it into a rental? I am already fixing it up and know it is a solid house that is going up in value. If I do this, I would not only save me time on buying and fixing again but also not loose the 10k or so that it would cost me to sell it (not to mention the moving costs). That amount would remain mine in the form of equity.

   I think it is a great idea, any thoughts?!?

Thanks

[David Faulkner]

Great idea, just as long as the house would cash flow after the cash out refinance, ALL expenses are conservatively estimated, and you keep some cash reserves to handle any unexpected capex, vacancy, etc. This is exactly how I built a nice portfolio of cash flowing SFR rentals ... if it works in SoCal, it should work in San Antonio :) ... Works even better in a down market.