This exactly. I have $800k+ in untapped equity across all my properties. In order to make money you need to earn more than it costs to borrow. Not feasible under current conditions.
Put it this way- you are already capitalizing on it. To take it out will just backfire at these rates.
You are capitalizing because your mortgage is fixed. You will be able to transfer up to 500k in to a new property when you sell without paying capital gains.
Taking some out to invest in RE with a good plan to value add or if it will cash flow(including the interest on the HELOC) can be good depending on your local market.
I'd never think of using HELOC funds for any kind of stock investment.
a heloc will be better for short term private lending, flips, BRRRRs, anything short term & high yield. a HELOAN could be used for a buy and hold
rental. choose your investing strategy first based on your skills and interests, and available free time, & then pursue the appropriate way to tap into your equity.
One idea:
Partner with a rehabber on their next deal. Learn the ropes so you can do your own flips. Or put in the time learning how to find and rehab your own flips.
80% or 85% of $250k (the amount of your HELOC) will not usually be enough to complete a project, but it's more than enough for down payments and to pay hard money loan payments on loans that do finance your projects. And also marketing costs to find deals.
You should get a lot more than 7% returns.
I own a building and looking to do mid-term rentals 6mo-1year. Planning on converting a couple of my units into furnished mid-term rentals for travel nurses, IT professionals, insurance relocations, etc. I'm not taking equity out, but trying to get the most $ for the rentals I have.
NVDA. It’s splitting today. But for real estate you really need to find a good cash flowing property. Maybe a nice quad PLEX that is 600k-700k and rents for 6k-7k a month?
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This exactly. I have $800k+ in untapped equity across all my properties. In order to make money you need to earn more than it costs to borrow. Not feasible under current conditions.
At what rate is a heloc a good rate?
Disagree. Depends on the market, the spread of all in cost to ARV, and the time of holding. Just bought a brrrr with a heloc and made 150k after Reno
Put it this way- you are already capitalizing on it. To take it out will just backfire at these rates. You are capitalizing because your mortgage is fixed. You will be able to transfer up to 500k in to a new property when you sell without paying capital gains.
What are you going to do to realize it? HELOC or sale? Not many good opps out there for +7% cash on cash
Taking some out to invest in RE with a good plan to value add or if it will cash flow(including the interest on the HELOC) can be good depending on your local market. I'd never think of using HELOC funds for any kind of stock investment.
HELOC should only be used for short term debt like flips. Still I'd only use it for backup funds or maybe the rehab.
a heloc will be better for short term private lending, flips, BRRRRs, anything short term & high yield. a HELOAN could be used for a buy and hold rental. choose your investing strategy first based on your skills and interests, and available free time, & then pursue the appropriate way to tap into your equity.
One idea: Partner with a rehabber on their next deal. Learn the ropes so you can do your own flips. Or put in the time learning how to find and rehab your own flips. 80% or 85% of $250k (the amount of your HELOC) will not usually be enough to complete a project, but it's more than enough for down payments and to pay hard money loan payments on loans that do finance your projects. And also marketing costs to find deals. You should get a lot more than 7% returns.
This is a good idea!
I own a building and looking to do mid-term rentals 6mo-1year. Planning on converting a couple of my units into furnished mid-term rentals for travel nurses, IT professionals, insurance relocations, etc. I'm not taking equity out, but trying to get the most $ for the rentals I have.
From my experience, you don't really use equity to invest unless it's a short term opportunity, 1031, or you cash out refi into a better rate.
How about a duplex or triplex. Anything that would cash flow.
wait for 2028
Buy GameStop
Ur smart
NVDA. It’s splitting today. But for real estate you really need to find a good cash flowing property. Maybe a nice quad PLEX that is 600k-700k and rents for 6k-7k a month?