Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

11
Posts
7
Votes
Stephanie Douglass
  • Investor
  • Austin, TX
7
Votes |
11
Posts

What Should I Do With All This Equity?

Stephanie Douglass
  • Investor
  • Austin, TX
Posted

Hi Investors! This is my first post:)

I'm curious to get expert input on what I should do in my situation. I live in Austin, TX and I own two homes in the two highest average annual appreciated zip codes (78702 - 12%, 78721 - 11%).

I bought my first house in 2013 for $180k. I owe $133k on it currently. It is worth around $290k now. I lived in it for 2 years, but it is now rented and cashflowing $400/month. 

I bought my second house in 2016 (primary residence) for $300k, put a bunch of work and about $34k into it to make it nice and convert the detached garage into a 1/1 little house. It is now worth about $450k. I live in it, but rent the back house on Airbnb - I'm cashflowing on average about $900/month plus I live for free. 

I'm in a very good position for age 28, but I want to keep investing! I went from full time elementary school teacher, to part time to focus on my property management and open a small business. This makes it really hard to get a loan or to even cash out refinance because they cant count a lot of my income. 

My question is: How do I best use this equity? Or if you think I should let those properties be, how do I continue to obtain properties with such a perceived high DTI ratio? 

I hesitate to sell my initial property because it is cash-flowing and it is continuing to increase in value. In Texas, I cannot cash out refinance on a rental property, only a primary residence. 

If you were in my position and wanting to build your portfolio, what would be your next step? 

THANK YOU SO MUCH IN ADVANCE! This platform is so amazing:) 

Most Popular Reply

User Stats

91
Posts
106
Votes
Andrew Allen
  • Investor
  • Austin, TX
106
Votes |
91
Posts
Andrew Allen
  • Investor
  • Austin, TX
Replied

It's not true you can't cash out refi a rental in Texas. I just did it.

Loading replies...