All Forum Posts by: Yogev Finegouz

Hello everyone, I've been looking into home equity loans, Heloc and cash out refinance as a way to finance next deals. Considering interest rates are high at the moment, how do you guys make sense of using the above methods for a down payment for properties? Anything I look at always has negative cashflow at any appreciating market and with that said, do people just usually suffer the risk of years without seeing anything cashflow using the above methods?

Thank you for your input!

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Quote from @Marshall Leipprandt:

@Yogev Finegouz There will be a lot of "it depends" here. The first one is what are your financial goals? If you want to free up that equity to purchase other properties in other markets, you could try a HELOC to use as a down payment elsewhere. If it's kicking out good cash flow and your goal is cash flow, then I'd keep it and let it continue to perform as a cash cow to supplement your income.

If you are investing in areas out of state where you are happy to be investing and your returns are strong, it could also make sense to buy again in that area and consolidate your portfolio. The problem is that if you try to sell now, you'd have to wait until closing to get your equity out and by that time, the market outlook in your out of state market may have deteriorated to the point where you no longer want to purchase and then you're left with your money sitting in a bank account losing to inflation.

I own and invest in SoCal and in Florida and with the little information you've given, I would probably keep your LA property. It is not hurting you at all except for a smaller ROI. I'd take the bird in the hand in this case which is strong cash flow in a property that you own outright.

You brought up some good points. I think that if we sold our condo now, we wouldn't have good investments to buy, especially not using the full amount we'll receive and we'll probably lose some cash in the process. We are investing in buy and hold properties in another state and intend to continue to do so pretty much for as long as possible so this aligns with what we're doing. The difference here is mainly the price but also the laws that are way more in favor of renters (which deters us from long term investments here in CA). Thank you for your response!

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Los Angeles County, California

Hello everyone,

Me and my wife live in CA. My wife made the mistake(!) a few years ago of buying a property we then lived in together in cash. Today we moved out and are trying to figure out if we should sell it and collect nice cashflow (but still very low ROI) or sell and wait to invest in way higher cashflow locations. We are already investing out of state today but not sure as everyone else where the market is going to be in the next 6-12 months and what would be better. What would you do?

thanks!

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Los Angeles County, California

All Forum Posts by: Yogev Finegouz

Yogev Finegouz has started 3 posts and replied 13 times.

Post: Making sense of home equity

Post: To sell or not to sell

Post: To sell or not to sell