Should I pull some equity to purchase an STR?

[Ben Cochran]

I'm going to consult a local financial planner but thought I'd ask the brilliant minds at BP as well. My wife and I own 3 properties in Colorado and are considering pulling some equity to purchase an STR in the Tampa Bay Area. Currently speaking with a local realtor about the STR zoning issues, insurance issues, and current/future market in Florida. 2025 should be a good time to look for a property there.

1. Is an LTR with a paid off mortgage. Appraises for $325k. Has a $100k Heloc on it that’s being paid down. Rent is $2k/month.

2. Is an LTR with a $290k mortgage ($1900 payment). Appraised for $525k and is rented for $2800 month. It carries a $50k Heloc that’s being paid down.

3. Is our primary residence and is a long term live in flip. $490k mortgage. The $50k Heloc on house 2 was used to begin renovation here. We plan to live here for 2-3 years and sell. Should appraise for $660-700 when completed.

I’ve been told I still have a lot of equity in #1&2 just “sitting around” and it should be put to use rather than just sit there.

My concern is that I might be over leveraging myself if I try pull out a 20% down payment for a DSCR loan.

Any thoughts is you were in this situation?

TIA