Investor advice CA/TX.

[Jack Smith]

I saw one of your bigger pockets shows on ROE (return on equity) and have a few questions with my current position.

My present home, where I reside in California, is worth somewhere in the neighborhood of $900K and I owe about $250k. I currently have a 2.75% rate on this 15-year loan.

I'm about to close on my first SFH (3/2/2) (off-market) deal in the next few days which I paid ($250k) cash for the property in the Dallas/Fort Worth area. The home also comes with a MIL suite, but does not have a bathroom or kitchen, presently.

Prior to watching your show on ROE, I thought it would a "smart decision" and I could eliminate risk as much as possible by purchasing with my own cash. Using various online tools, the house is worth between $350-375k and I can probaly rent the house between $2,200-2,500 a month. My immediate plans is to rent the home and the mother-in-law suite once I'm complete with the cosmetics and the addition of restroom and kitchen. Performing this will generate an additional $900-conservatively.

I would love to hear your suggestions on utilizing a HELOC on my current home and purchasing another similar property in the area? I don't plan on retiring in my 60's or possibly ever unless I have health conditions that prevent me from working. I also am not sure if I'll someday move to TX in the future since I really like California weather.

Thanks for your input.