Equity or Capital

[Dustin Fisher]

I recently purchased a duplex in Knoxville, Tn. Should I focus on building my equity in the property or save my excess money for capital? Is it better to leverage a property or have more in savings for my next deal?

[Jarred Sleeth]

@Alexander Felice, sounds like you're utilizing a BRRR strategy? Good strategy to get your cash in and out then move on to the next deal, keeping the rest as built in equity of ~25%

We recommend keeping as little cash in the deals as possible because now there are many ways to maximize returns instead of paying down mortgages. As long as you meet your cash flow criteria and don't over leverage, you'll be fine. When you start to build some equity you can always refi that later for more deals, again, if it still meets your cash flow criteria. Lending is cheap now and cash is king.