New Investor in Houston TX

[Lizeth Nevarez]

Hello everyone. I am a new investor in the Houston TX area. My husband and I are new to investing. We both have full time jobs, good credit, an owner financed mortgage with alot of built equity that we are considering doing a cash out refi on. We also own 3 lots of land free and clear(5,000sq ft each). 

Not sure in which direction our investing should head.

1) cash refi our current home and invest the money in rental property.

2) cash refi our current home and build on our lots.

3) use hard money to build on our lots

any advice would be greatly appreciated!

[Mark Brown]

@Lizeth Nevarez

If you have a lot of equity, I’d look into getting a heloc - home equity line of credit, as opposed to a cash out refinance. With a refinance, you have to start making payments and paying interest in the money you take out, even if you don’t have a money making a investment right away. With a heloc, you won’t pay interest until you take the money out for your credit investment.