Pulling money out of a property

[Zach Neff]

Hello Everyone, I am happy to be a new member of bigger pockets. I am a real estate broker in Arizona. I have been a licensed agent for 3 years going on my 4th year and now a broker. Sales have been such a rollercoaster here I want to explore different avenues as well. I have been dabbling in Airbnb since 2016 when I bought my first property and remodeled it. I bought for $268k and last year it was worth 1M. My neighbors have since joined the Airbnb gang and they make around $75k a year with a pool which used to be $120k NET a couple years ago before a little saturation. With all of that being said I do not self proclaim myself as an investor. I am strictly sales and have owned a marketing company for a long time as well. Sales is where I excel. I have a lot of friends who invest / flip / build etc and I have done it once with success. My question is this. I plan to Airbnb my home. My expenses will be 20k a year and I will Gross around $75k. I have $800k in equity right now but I have bad credit in my current situation. I am ready to expand but take calculated risks. I am scared to pull money out of my home unless it is generating income in which it will this year. I want to buy property after property after property and I am looking for strong advice on what to do. There are a lot of people who are not trustworthy in this industry so It would be good to hear what season veterans have to say. I know I am a Millionaire on paper but it certainly does not feel like it lol. I look forward to hearting from all of you  and thank you for your time. 

[Tanner Strand]

Hi Zach!

Depending on your current credit situation, some private money lenders are starting to do DSCR loans on STRs. In the current market, cash-out refis are dominating private money. Most of the investors I work with are pulling every bit of capital they can out of their current portfolio and purchasing additional properties. $800k can go a very very long way, depending on what you want to do with it and what market you are working in. I am also in AZ and know that competition is fierce, but you have more than enough equity to work with.

While I am not an experienced investor, I would suggest working on improving your credit and getting the AirBnb going. Then, use that pile of equity to acquire more properties. You don't have to pull out all $800k either. If you choose a good lender (PM me when you're ready) they will help you mitigate risk and work out a deal that you are comfortable with.