Should I sell or refinance and pull money out?

[James Gardner]

Hello,

My goal is to purchase rental properties; my primary residence has about 200,000 dollars worth of equity and I love the house and its location. Should I sell my house, or take the equity out of the house to purchase rental properties?

[Michinori Kaneko]

James, the price will def drop at once point because the market is always a cycle. having said that you can always open a HELOC. that ways you can take out money (even when the valuation comes down you have that line) and buy properties while the prices are low, instead of selling the property now and holding onto the cash (and making no returns on it). By keeping it, opening a HELOC, and renting it, you secure cash available for you at the next market down turn, while making return on your property from rent. Hope that helps!