Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Short-Term & Vacation Rental Discussions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 12 days ago, 12/11/2024

User Stats

109
Posts
36
Votes
Ben Cochran
  • Fort Collins, CO
36
Votes |
109
Posts

Should I pull some equity to purchase an STR?

Ben Cochran
  • Fort Collins, CO
Posted

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

Loading replies...