Buying homes with equity from other rentals
I’m 18 years old and I have just purchased my first home in Ontario Canada. It’s a new build that will be built next February. I bought it for 530k with 10% down. Don’t have to pay mortgage until it’s built. The other new builds, which are the exact same models are already selling for 570k as it’s in a developing area. My plan is to pull some equity out once I get the house(or within a year) and purchase another home. Is it risky to have 20% equity in multiple rentals if I repeat the process? Is there any better strategies I should use?
Most Popular Reply
@Colson Boyle
It is risky.. You don't want to be over leveraged. Whatever you do make sure you have cash reserves.. Its ok to refinance but to use all of the money you pull out and use it all on a downpayment is not wise.. Make sure you have a buffer.. So many people see the market is hot and jumping on bandwagon and overpaying can get a wake up call. I laugh at the prices people are paying for homes these days.. almost impossible to cash flow..