Whats Next??? Whats your strategy??? I NEED HELP!!!

[Michael C.]

I'm trying to decide my plan of action and want to get some input from you guys. I'll break down my situation and my questions so I can get clear answers.

Situation:

I live (rent) in Los Angeles and am looking to purchase a home to live in. I was approved for the low 500's but I would like to stay below that to maintain cashflow.( townhouse or small SFR) I really need a home becuse I've been in my same tiny 1 bed apt for 7 years but now I need a house for my fam.

I own two SFRs in Atlanta.  Purchased in 2017 for about 65k each. They are now valued between 130-150k each.  The mortgage is now about 440 on each plus $100 p.m. but it will go up because property tax went from $800 a year to about $2200. They rent for 950 and 1000

Questions:

I want to buy a home in LA but still have enough cashflow to keep investing.

Should I refi or heloc the atlanta houses to buy more?

Should I refi or heloc the atlanta houses to buy a house in La ?

Should I rent in LA and just focus on investing?

How can I have my cake and eat it too

What would you do in this situation.  I'm sure you guys have some much better ideas than me. 

Thanks friends

[Michael Albaum]

Hey @Michael C., firstly, I'm not sure I understand this sentence:

"I was approved for the low 500's but I would like to stay below that to maintain cashflow.( townhouse or small SFR)"

If you're purchasing a primary residence and will not be renting out rooms in it, then why would you cash flow at all?

Secondly, most finance advice would tell you to analyze the overall cost of owning a home, (PITI, maintenance, upgrades, furniture, art, etc) and compare that to the cost of renting. One should make wildly more sense than the other, and I think you and I both know which one that is, especially in LA. If i were you, I'd refi the ATL homes, continue renting, take the down payment money you were going to use for the LA home and invest in some awesome rentals. Then in a few years, when you have built up enough cash from the rental properties, you can look to buy something for yourself. Think how long it will take you to purchase rental property if you buy the LA property and have a huge mortgage looming over your head on a property that doesn't throw off usable cash flow. Best of luck!