Quote:
Originally Posted by Lt.Spears
I know your joking but i always think people who take loans out on the equity built into their houses are so stupid.
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Now why would you go and say such a thing?
That's exactly what I did, and though I'm carrying two mortgages and the HELOC at the moment, both are rented out and both are completely cash flow neutral, but both are building up equity. That's FREE equity.
Plus the rent I earn is helping me to aggressively pay off the HELOC (it'll be paid off in two years, while still having the money to cover the mortgages). How is that possibly stupid?
Once the HELOC is paid off, I may look at investing elsewhere. I don't think I'll buy another residential rental, just in case that market goes to hell. I'm leaning towards either commercial property or stock market. But I still have time to decide on that.