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Updated almost 11 years ago,

User Stats

180
Posts
114
Votes
Rob Myers
  • Milwaukee, WI
114
Votes |
180
Posts

Ideas on how to best leverage capital from vacation property

Rob Myers
  • Milwaukee, WI
Posted

I'm looking at all my options to free up capital to buy my first two rentals. We own a vacation property free and clear worth around $150k. I'm not completely in love with it and have considered parting with it, but the market is still a little soft and it may take a while. We also enjoy spending time there, but from a logical standpoint it's cash that is tied up and not bringing in income. The financing for these first two rentals will most likely be conventional.

Here are ideas I thought of:

1. Sell house outright and use capital for down payments.

2. Get at HELOC for 80% of the appraised value. Find long term tenant for the house. It will cash flow negative, but not too bad and I still retain ownership of the property.

What else am I not thinking of?

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