How to tap into equity

[Adam Joachim]

Hey guys, I’ve got a strategy question. I have a property with roughly 100k in equity that cash flows $600 per month. How would you suggest I tap into that? Sell, refi, heloc? What moves would you make in my position?

[Joe Villeneuve]

Only one option that will work....sell.  Here's why.

If you are getting only $600/month in CF now, and assuming you get all $100k out in a loan of some type, your added/new MP would be over $500/month leaving you with way too small of a CF remaining.

Sell the property, and buy a better one, or two of these.  This is actually an ideal situation.  It allows you to start the process of flipping your cash and having your cash compound itself, over and over again.