Hi everyone!
My name is Bryce and I am brand new to BiggerPockets!
I feel stuck and am looking for advice and strategy on my next investment, please help! Here is my situation...
I am 28 years old and about 6 years ago I bought a condo in Oceanside for $160,000 and put down 20% to avoid PMI. After living in it for several years with a roommate (I was in college and would not have been able to pay the note without a roommate) I converted it into a rental for $1950 a month and rented a room elsewhere for $650 a month. My net income on the property is $900 a month and I managed to save all the profits to put down on another condo in Vista which is the next town over. I purchased the condo in Vista with a friend for $319,000 two years ago and we put 20% down together to avoid PMI and have a reasonable payment. We each put roughly around $34,000 to close on the property. We both currently live in the property with another roommate. I know I could rent it for $2300 so we would be able to cash flow the property for $400 a month when we are ready to move out.
My rental property in Oceanside has now gone up to about $270,000 and I owe $(115,000) on it so I am sitting on about $150,000 in equity. I don't really want to sell it and would like to hold onto it because of the cash flow and appreciation but more importantly I would like to build my rental property portfolio. I am still saving the income on the rental which I now have $18,000 saved since the purchase of the Vista property to put towards a new down payment. My goal is to rent out the condo I am currently living in and to potentially move into a new house/condo with roommates and repeat the process.
So here are my questions...
1) Do I tap into the equity with a cash out refinance to put towards a down payment on a new property? (Rates are so low right now I need to refinance regardless). Or do I keep the equity in the property and continue to save the $900 a month to eventually put down on a new property. Although at this rate it will take me another 4-5 years to save up enough money for another down payment.
2) What should be my next purchase? Do I continue to buy condos in my area for $250,000 to $350,000 with 20% down? Do I purchase a single family home from $450,000 to $550,000 with 10% down? Or do I try and purchase a duplex or triplex? (By the way these are all C - class properties I am referring too).
3) The other option is to invest out of state or county which is a little outside my comfort zone. I have grown up in North County San Diego my entire life and am very comfortable and knowledgeable about the different neighborhoods and towns so I feel like I should stick to what I know? Is investing in San Diego real estate a good idea or should I be focusing my time elsewhere?
Looking forward to hearing from you all!
Bryce
