I have not taken that first step to get into the investing world. I take that back, I joined the local REI club. But other than that I have the jitters to taking that step. My question is that My mother has a double that she rents out and does very well on. The property is worth around 250K. She only owes 60K on the mortgage. Can she use the equity in the rental property to purchase other properties to build her portfolio. Is this a wise way to get money? Does anyone have another creative way to get the money
She could borrow against it but would probably have a negative cash flow if she borrows too much. There are some good buys out there now which could offset that though. Another way I like is to create notes against the equity and use those to trade for other property. This is not for someone who isn’t very experienced with creative financing.
Good luck,
donrock