Thinking of investing with Cash out or HELOC

[Alex Tokmazeyskiy]

Hi, 

I own an investment property 2 apartment building in Chicago, that currently has over 200k equity (bought in 2012). Cashlow from renting is about $1100 monthly. I feel I am ready to invest again, maybe doing a BRrr method with cash out refinance or perhaps a flip. Where should I start ? I am also a licensed agent since 2022. Would it be worth it with today's rates ?

[Jonathan Klemm]

Hello there @Alex Tokmazeyskiy!!  I'd echo @Jonathan Greene right away don't over leverage your current property because your cash flow will drop quickly.

I'd consider thinking about your goals, vision, and why, for investing?  That might help you figure out whether you should be flipping or buy&hold'ing.  

If you are looking to build quick capital and another full-time job, then flipping may be the answer...if you are looking for a slightly more passive approach and looking to build that long-term wealth, buy&hold'ing is maybe a better strategy.

I've found introspecting on where I want to go long-term has helped clarify my short-term path...

The beautiful part is Chicago offers all options at affordable prices general speaking compared to other metro areas.