All Forum Posts by: Mike Schofield

I have to agree with the post above about not having too much leverage.  You are going to want to have some money set aside for maintenance and such.  You also may find it more stressful to start with the contract and then looking for the financing.  If you switch them you'll be going in with a plan.

That said, many investors start out on the shoe string budget. If you do a HELOC, you'll be paying it back with a higher interest rate and over a shorter term. The cash out refinance will likely keep your payments lower, and come with a lower interest rate. If you were looking to BRRRR a HELOC might be a good choice, but if you are just going the buy and hold route, then the refinance might be the better option.

It sounds like you're already deep into it on this one, but in the future, if you buy at a sufficient discount, and maybe include some reno in the plan you may avoid large down payments, and get your equity through forced appreciation.  Good Luck!

I second on doing both!  You could refinance your properties to take cash out.  You could continue to collect rents that pay down those mortgages, have money to invest in the market, and still get the depreciation tax break.  You'll continue to keep any appreciation and cashflow, while avoiding the capital gains and the cost of the sale (taxes, fees, and commissions.  Leverage is your friend as long as you don't over extend yourself.