What’s the best way to transform a liability (like your primary residence) into performing assets? That’s the first question I’m answering on today’s Q&A episode.
On this episode of Investing in Real Estate, I’m tackling three listener questions about using home equity to buy rental properties, the best states to live and invest, and how to decide whether a renovation project is better suited for flipping or renting. Press play to hear my answers to your burning real estate questions!
On this episode you’ll learn:
- How to use your home equity to buy performing assets.
- The best states to live and invest.
- How to decide between flipping and renting a condo.
How to Use Your Home Equity to Buy Performing Assets
If your primary residence has built up equity, it’s wise to use it to your advantage. Think about how you can turn this liability (home) into a performing asset. One of my favorite ways to access equity is to get a HELOC. The bank will give you access to a credit line which you can use as a downpayment on a rental property.
The Best States to Live and Invest
If you want to live and invest in the same state, I have a few suggestions. Texas is my favorite state to invest due to its landlord friendliness. Texas also offers other benefits like no state income taxes. I would also consider Tennessee, Florida, North Carolina, and South Carolina.
How to Decide Between Flipping and Renting a Condo
Under normal circumstances, I would always choose renting… but in this circumstance, there are a couple reasons why flipping might be a better choice. For starters, most condos belong to HOAs which are not landlord friendly. Additionally, right now is a great time to flip. Many flippers are seeing profits rise 25%. In this scenario, it might be best to flip and then reinvest the profits.
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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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