Using existing equity

[Ajay Malhotra]

Hello BP members,

I have a question about using existing equity in a house. Lets say theres a rental house I have, its paid off (no debt on it) and has appreciated nicely. I'm looking to purchase another property in the near future, what is the best way to use the equity in that house as it is just sitting there locked in not doing too much...

I have good credit and have cash for downpayment or even to buy a smaller place outright in cash if it made the deal better. What are the best ways to use it this equity? I guess it is probably not as useful in just buying another property if I already have cash for it, but in the future it could allow faster leverage in acquisitions?

Just some curious thoughts on how to take advantage of the equity.