It's not the same thing.If you have $130,000 in equity, I would not use any more than $65,000 on a new property and $15,000 of that should be held for reserves so you would have $50,000 for downpayment and closing costs really.Unless your rental property is new construction, you don't want to max out the equity in case of large repairs coming.

Make sure you have some money set aside for repairs and turnovers.

The buildings are getting older and they don't have the funds to do the repairs.

The property cash flows at a 15% ROI…………………..before insurance, debt service, utilities, management, vacancies, repairs, maintenance, payroll and property taxes7.

If the entire home is rented out then there can be some incentives to fix things like some big repairs such as roof, windows etc.

Over and over, you can be constantly evicting and replacing appliances and doing major repairs.

The biggest mistake new investors make is to walk a property, maybe explain in general terms what they want and then let the contractor come up with the SoW.For a bedroom this could be:- replace carpet- repair closet dooror- remove carpet- remove curtains, nails and screws- replace closet doors, entry door SKU#- replace window SKU#- refinish hardwood floors 144 sqft, clear/oil-based- prep and paint all woodwork- patch walls, texture, paint walls eggshell white clay, ceiling flat white- replace light fixture SKU#, replace lightswitch w decora/white, replace 3 outlets&covers- install blinds SKU#Obviously, the cost would be quite different.

Prepare the property: This is the time to purchase new furniture, restock supplies, and complete any necessary repairs.5.

We market the property as available now, meaning that it doesn't have to be repaired and/or it is vacant.

I know, you have “repairs”already.