My general advice is to rent the home you live in. But what about using the equity in your primary residence to buy rental properties? Today we’re going to walk through the pros and cons of owning your home.
On this episode of Investing in Real Estate, I’m answering three listener questions about owning vs. renting, using business credit, and how to best utilize your savings when investing in real estate. If you want to learn more about real estate investing, this episode is for you!
On this episode you’ll learn:
- The main issues with owning your primary residence.
- How long you should wait to refinance after buying rentals with business credit.
- The best way to use $100k for investing.
- And more!
The Main Issues with Owning Your Primary Residence
Generally speaking, I don’t suggest owning the house you live in. My main argument is that it’s better to put that money into a performing asset that will put money in your pocket every month. But what about the benefits of leveraging the equity in your home? Ultimately, it’s a personal decision. However, here’s the main flaw with that idea: although you can eventually tap into your home equity, you have to put down a sizable down payment. I’d prefer to use that money toward a rental in the first place.
How Long You Should Wait to Refinance After Buying Rentals with Business Credit
There’s not a required seasoning period for refinancing a rental property. If you’re using business credit, it’s smart to be looking ahead at your options for when the introductory interest period expires. Keep in mind that if you’re working with Fund&Grow, they can often help you roll over into new cards—just don’t wait til the last minute.
The Best Way to Use $100k for Investing
At our company, we want you to keep as much of your cash as possible. While having money available for a down payment is excellent, there are many financing options available. Using other people’s money is a great avenue for building your portfolio. I recommend booking a call with our team so we can help create a customized plan for your unique situation!
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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