USING MY EQUITY TO BUY MORE PROPERTIES

[Maria Luna]

Hello guys!!

Just looking for advice on what to do.

I have a sf investment property in Washington state that it’s paid off. It rents for $1500 per month and it’s worth around $330,000. After property taxes, insurance and reserves for maintenance and repairs, I get to keep about $1000 per month. (I self manage)

I currently live in Orlando and looking to buy some more investment properties sometime next year after I reach my two year work history. I’m thinking to pull some of the equity of my Washington house to invest in Orlando. Maybe $150,000 and use it as 20% down pmt on three condos or small sf OR maybe a apartment building. I have also looked into the possibility of a more luxurious condo in brickell downtown Miami for posible Airbnb or rental. ( long term goal for me is to move to brickell)

Just want to hear what would you experience investors would do in my situation??? Having a paid off house gets me piece of mind but I also want to keep investing to accelerate my freedom from my job.

[Matthew Irish-Jones]

@Maria Luna There is not a right or wrong answer.  There are people that snowball debt paydown, pay off debt as fast as possible, and use the increase in cash flow to continue investing.

I am the opposite type of investor.  I use the equity in my buildings to continue to buy more buildings.  After ten years of building equity I now buy in all cash, renovate in all cash, then take out mortgage.  I prefer to continually use my equity because I am "young(ish)" and plan to be in this business for 20+ years.  My tenants are paying off the debt, my assets are appreciating and I am continually adding doors.  

Make sure you have good business systems and great vendors.