When/If to Pull Out Equity?

[Steven J. Umaña]

I'd like to hear any strategies/philosophies regarding pulling equity out of your property to finance renovations or another acquisition. Obviously, the answer to the question "When do I pull out equity?" is completely dependent on all sorts of facts and circumstances surrounding the property and financials. Note: My current strategy is the accumulation of passive income multi-family rentals. 

So, does anyone have any strategies/philosophies they'd be willing to share? Anything from big picture stuff to small picture stuff. I've never pulled equity out of a property, but have always thought to do so to grow my portfolio. The question is..... when?

Thanks in advance.

[John Warren]

@Steven J. Umaña I have built my whole portfolio through this strategy. I was able to buy and then subsequently refinance most of my initial investment out of my Lyons four unit in 2015/2016. This jump started my portfolio from 0 units in 2015 to 33 units in 2018 though the acquisition of my apartment building in Berwyn, IL. I believe you should always pull out the cash as long as you are not hurting the returns on you current portfolio too much. I think this is especially true for younger investors who can really benefit from time being on their side. Obviously, each time you "fleece" your property, you will get less cash flow from it, so you don't want to pull equity just because. It is part of a disciplined approach to investing.