Pull out 400k in equity to invest in commercial?

[Manuel Scott]

Hey guys. I have about 400k in equity in my home and another rental property. I already own 30 doors, but I’m trying to get to 100. Would you pull out that equity to buy a 1.3-1.6m apartment building or would you leave that equity alone and continue to build up your savings to get a 25-30% down payment? I’m torn between paying off home and quad from work income ( I owe about 200k total) or pulling out money to invest for more cash flow. Any wisdom appreciated.

Thx!

[John Corey]

Manuel, I think you have conflicting goals. That said, it could be how you are framing the question.

If you are good at operating the properties you have so far, can you bring in other investors for future deals (using a legal process)? 

Do you enjoy the day job?

If you flipped a coin, would you rather have 100 units (heads) or a home that is paid off (tails)? I find that flipping a coin can help you get in touch with your emotional preference. I am not saying it is a good way to decide. Just a good way to understand what would disappoint you.

You are in a great position. You have some cool choices. Take some time to get to the bottom of what is motivating you. The 100 door goal might be driven by external forces which have nothing to do with what you personally want. Or, just the opposite.

Happy to continue the discussion. The answer has to be right for you.