First time rental

[Brad Tull]

Hi all, I'm new here. I was thinking about pulling 100-150k out of my house (currently owe 150k but worth 600k) to buy something to rent. I am not averse to something in the 10-35k range but would need to find the right mix of location and situation to pull the trigger on a project like that. I'm currently considering Erie, PA, Pittsburgh, PA, and Columbus, OH, although I am interested in NY state also.

Any thoughts would be helpful.

[Nicholas L.]

@Brad Tull

if you're buying entirely with borrowed money it will be extremely difficult to be profitable even in the long term. especially if you're saying you'll use a HELOC - HELOC money is expensive money.  during the draw period (typically) you won't even be paying down principal unless you make extra payments.

so unless you have cash i would wait.  but let me know if i'm missing something