SFR with 50k equity what to do with?

[Derick Davis]

Hello all, I have a SFR that i have about 50k equity in, I have a 15year note, payments are 995 and it rents for 1250 a month, Im thinking about selling next summer, my question is should I sell this property and invest the funds into a 4 plex or multi-family units or should i jump into the buy and flip game? I have a stable W2 but i am feeling that I either need to acquire more property to build my portfolio quicker. I have tried getting a heloc but since it is not my primary I have not had any success. So my question is what would you do in this scenario, I greatly appreciate all and any advice

[David Greene]

Hey Derick,

I recently ran into a similar problem. Had several rentals with tons of equity but didn't want to sell to access it.

I ended up finding HELOC's on investment property through local credit unions. If you find one in the area where the property is located, and you also live there, there is a great chance they will underwrite for you.

I also found out Wells Fargo will do them. I have a contact there I can refer you to if you'd like.

As far as flip or long term, I'd say find a way to do both. That's how I think.  Keep just enough equity for the 20% most hard money lenders want you to put down, and invest the rest. Or, flip 3 houses, then buy one. By then you should have enough bank rolled that every flip you do can go to buying another rental. If you buy the rental first, you won't be able to flip. If you flip first (and don't lose money), you'll still be able to buy the rental.

Let me know how else I can help.

-David