So, I posted a topic about me thinking of using my equity to buy a property, but this is a different question. Im just trying to find, after doing research, why do people consider this even a good idea.
Im hoping this is the correct area to post this, but im trying to determine why would people touch their equity to buy another home when you have also have to pay that equity back during a long term investment?
Reason I ask is, I am trying to see how this is even a benefit when usually equity plus the new mortgage price is still higher than the average price around town. I can understand 20% of your own money because you dont pay that back and it sits as an investment in a home, but equity, I am having a hard time seeing how this even clears rent + equity return.
example, im looking into cape coral (would like to be a future investment when I retire) with 20% down its about 900 a month but to rent it out in that area specifically is about 1400. so with equity and mortgage, its about that price and possibly more. SO how can possibly pulling equity for an investment be good for investments?
Submitted May 20, 2021 at 08:00AM by ridewithwill https://ift.tt/3hKxx0D
