Recently, Natali and I financed our home equity line of credit. As investors, we have a few options in terms of what we can do with this line of credit. We planned on discussing this topic regardless, so we figured why not share our plans and thought processes here on the show!
On this episode of Investing in Real Estate, Natali and I are discussing what we should do with our extended line of credit. Will we invest in more single-family homes? Will we purchase a different type of investment, or in a new market? Will we pay off other debt? Find out on episode 103 of Investing in Real Estate!
More About This Show
When trying to decide how to use our line of credit, we have a lot to consider. Normally, we invest in single-family homes in the Midwest. Thus far, they’ve performed well for us. But maybe it would be wise to try something new.
We have dozens of properties in the Midwest; perhaps we should do something differently with these funds. Also, there is an argument to be made for learning about new types of investments. By experimenting with different investment types, you gain knowledge and hone different skills.
Since we recently moved, another option is to use the HELOC funds to pay off a large chunk of our primary mortgage. Doing so would save us both time and money! To be exact, $175,000 in interest, as well as six years of payments.
That sounds fantastic, and so satisfying. But at the same time, the tax benefits of rental real estate have enormous benefits! Passive income from our properties alone could pay off our mortgage every single month for the term of the mortgage.
Today on the show, hear us come to a conclusion about what we should do with our HELOC. You’ll hear us discuss all the facets of this decision. We’re talking exact numbers; don’t miss this episode of Investing in Real Estate!
If you’re ready to begin building a passive income through rental real estate, book a FREE call with my team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- How do you evaluate a debt to equity ratio?
- What is the argument for taking on a different type of investment?
- Can you be too oversaturated in one market as a real estate investor?
- How can you use your interest rates to your advantage?
- And much more!