Hi BP communites, I think I going to refinancing my home equity to take out roughly 500k for 30 year loAN and buy property for passive income.

I figure I am paying myself via equity by paying down the loan for the down payment, and when that is paid, I can turn it over to a PM if desired for no change in cashflow, or keep self-managing for a much greater return.

My question to the forum is whether I should take advantage of the higher real estate prices (higher appraisals) and still somewhat decent interest rates and pull equity out of all four of the properties now or whether I should wait pull equity out as needed?

If you built a triplex next door you wouldn't necessarily need to split the lot if you were looking at a build and hold scenario and you could get owner-occupied construction financing.Doing 5 or more units on the same parcel puts you into commercial loan territoryYou could however potentially split the lot and then build a four-plex next door and stay within residential loan guidelines.Construction loans in my area typically lend 60-65% loan to costYou may have enough equity in the house to be able to get that 65% financing without any cash out of pocket.If you were able to split into 10th of an acre lots you could phase the build out of 6 single family homes: BBRRBuy, Build, Refinance, RepeatGood luck!

@Michael Stanley NinoDo yourself a favor and invest passively alongside an experienced investor who can put you in a much larger investment (100+ units).

It sounds like you have at least 600k in equity, so another way to look at it is to see what your return on equity is.

They will both cash flow well, but don't really provide the opportunity to gain the equity to get my family to our long term goal of being financially free within the next 15 years. 

They will both cash flow well, but don't really provide the opportunity to gain the equity to get my family to our long term goal of being financially free within the next 15 years. 

For us, knock on wood, that's all you can do there and as long as your insurance doesn't kick you to the curb, you'll be fine.Biggest common risk I hear about is bad tenants ripping your places up and sucking away your time and equity. 

Check the market out of curiosity and gpu d out we have an ARV of $190,000So as of today our home has been on the market for a month and a few days and we are hoping to realize some equity capture!