Fix/Flip or Rental

[Shayan Sameer]

Hello everyone,

Hope you all had a great New Year! I have a question and would really appreciate your input.

I’ve done a couple of fix-and-flip projects in the past using hard money lenders, but I’ve noticed that their fees and interest rates significantly cut into my profits. In some cases, after running the numbers, I’ve even faced potential negative returns, causing me to miss out on promising deals here in South Florida.

That brings me to my question: I currently own two homes—one is my primary residence, and the other is a rental property. Both properties have a substantial amount of equity that’s essentially sitting idle.

Would it be a good idea to tap into this equity (through a HELOC, cash-out refinance, etc.) to fund future fix-and-flip projects or purchase additional rental properties?

I’d love to hear your thoughts on whether this approach makes sense or if there are other strategies you’d recommend to optimize profitability.