Hi everyone!
I am new to real estate
investment, but currently have two properties that I would like to turn into
assets and start growing my portfolio. I am seeking feedback on what someone
more experienced would do in my situation.
Property 1: Condo
- Rented for
10 years
- Negative
cash flow of $300 (HOA fees)
- Loan
balance: $30,000 / 5.25% APR
- Estimated
equity: Approximately $100,000 based on recent property sales
Property 2: Single-family
(Primary residence)
- Purchased in
2017 / 2.5% APR
- Loan
balance: $230,000
- Estimated
equity: Around $250,000 based on recent property sales
A little about my
"wealth", my credit score is in the 800s, I currently have $50,000 in
stocks/crypto and your typical Roth, 401k. My goal is to purchase
an apartment building or a few multifamily properties for long-term or
short-term rentals. I also have connected with another investor that is willing to invest 50k if the re-payment is favorable.
Now, this is where I need some
guidance: I am contemplating whether I should use my stocks to pay down the
condo. Once it's paid off, I would have a positive cash flow of approximately
$300-$400/month, (after taxes, insurance, hoa, water utility)
On the other hand, I could
withdraw money from my stocks or take a HELOC against either or both
properties and use the funds to purchase a multifamily property or as a down
payment for an apartment building. I also have a couple of credit cards that have plenty of credit with zero interest.
In a perfect scenario I would use the condo
as a collateral, no down payment. Has anyone done this before??
I am looking to learn!! assemble a
team, lender, real estate agent, CPA, and build a network or find a mentor.
Finally, I want to focus in multi-families in Texas, North Carolina, Colorado and Tennessee.
I appreciate any advice or
suggestions you can provide. Thank you in advance.
