Rehab Primary Vs. investment property

[Nate Efner]

What’s up BP’ers.

I have a few investment properties, but I’m ready to start being a little less passive. This is a good problem to have, but I’m torn on what the best play is and would love some feedback.

I've been approved for a $150,000 LOC on an investment property I own in Chicago. I just bought a primary residence in Austin that I paid $469,000 and owe $410,000 on.

My dilemma is do I put roughly $100,000 to add an addition and sqft that will give me an ARV of $650,000 based off comps

0r

Use the LOC to acquire an investment property to either buy and hold or flip?

My initial thought was to use the $100k to increase the value of my primary, pull out a HELOC on primary, pay off my LOC on my investment property which will leave me again with the $150,000 line of credit, rinse and repeat.

But…… since I’m suspecting the R word is very possible do I wait for a deal since my primary isn’t going anywhere? Mind you, I’m pretty green when it comes to rehabbing and have a limited network but would hate to miss out on some deals. On the other end, I could dip my toes in with my primary and start getting some processes in place. I think I’m in a good spot no matter what I do, but I’d love to hear some feedback from some more experienced investors.

Thanks,

Nate

Ps, sorry for the long post