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Updated about 5 years ago on . Most recent reply

User Stats

196
Posts
130
Votes
Eric X.
  • Real Estate Agent
  • Naperville, IL
130
Votes |
196
Posts

Cash out of Primary or cash out of investments?

Eric X.
  • Real Estate Agent
  • Naperville, IL
Posted

Hi BP members! I just want to get feedback on which is the best route to take. I typically pay for properties cash and I usually leave the cash in the houses I get unless I need the cash for another project (Think of it as a delayed BRRRRR) I have fairly strict criteria so I don't pick up 20+ properties a year but I usually try to to get anywhere from 2-5 annually.

My question is whether I should take cash out of my primary property (no mortgage  ~ 550k value ) 30 year at 3.635% or if I should cash out of some of my rentals (180-250k give or take depending on which one) 30 year at 4.125%.  

I can't deduct interest from my primary but I can from my rentals.  Is it as easy as just taking into account the interest deduction? 


Not really in need of the capital but want to make sure I make the right decision when the time comes.

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