Should I pull a HELOC on this property?

[Peter Skrzypinski]

Hello All!

Before finding BiggerPockets I purchased the attached property and while I may have made a different decision after finding all of this information, I did make the purchase (via 1031) last summer and I'm generally not inclined to sell and incur the cost/trigger deferred tax on the property if I exit now.   

My big question at the moment is whether I should try and pull a HELOC on the property? The property has some opportunity to increase square footage and turn one of the units into a duplex unit and drive the rent a bit higher, but I originally planned to improve the property before refinancing to get some cash out. After reading and getting connected to the community, I am now wondering if it doesn't make sense to try and get access to this equity now so I have flexibility about where to use that capital going forward. Perhaps it makes more sense to pick up another property with that equity rather than improve this one.

What is the consensus? I'm open to hearing all options, I only mentioned my inclination not to sell because of the expense/tax associated with the sale. I recognize the ROI isn't super exciting compared to a lot of what's discussed here.

Peter

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