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Updated almost 11 years ago,
Ideas on how to best leverage capital from vacation property
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?