Which Is Best... Use Your Equity Line Or Finance?
Have offer on land I can buy cash w/ equity line but then I'll be broke but I will have saved all the bank fees and can still deduct interest
Will probably build in 2 yrs on lot and sell my principal home then
Or I could sell a rental property to pay off the lot after I buy it, ..but then I could never replace the rental even near the same price . I guess there is no perfect way is there?
Do you investors like to hang on to the cash or do you consider home equity borrowed money and not really yours?
Also, I see many people say "cash out the equity or refinance" What are they thinking or are they not planning on holding on to the property for the long haul?
Just trying to see where others are coming from as far as investing ideas go
Thanks for any replies 
investing you give a little to get a shot at what your goals are and if your not willing to sacrafice to get what you want you wouldnt be an investor. good luck
It's tuff to say what you should do with such little information. Personally I invest in areas where I expect real estate prices to rise. I don't plan on selling any property until I retire. I would kick myself if I sold a piece of RE to buy another, only to find out I could have taken out the equity and had both properties ten years down the road when they are worth much more. To practice the buy and hold investment strategy, you also need to be willing to rent out the properties you are not occupying to cover the mortgages.[ Edited by Mainline on Date 08/15/2003 ]
land is generally the hardest to finance as without a house on it it's value is frequently negligeable. Additionally it generates no income for you and is a drain on cash flow. What about other alternatives? Is this really the place you want to live? or could you wait until you are ready to build to buy and perhaps roll the house and land into a loan?
IF the market is not all that hot and you love the land try an option on it. You pay a fee and get first right of refusal if someone else presents a serious offer on it. This would keep the $$ in your pocket longer.
[addsig]
Thanks for your input
it really helps and I am more comfortable w/ my decision which I think is buy the property outright w/ equity line, save fees, put my principal residence for sale in a few months, and plan to build while interest rates still low, get my tax free money from sale of personal residence and keep the rental!
Problem solved! [I think]
I would not use the equity line unless the bank is willing to give you a simple interest loan at prime. Collateralize the loan with your own money, the Bank will loan 90% of Appraised on Lots. You get to take up to 100,000.00 as a deduction, then keep your cash in a Smart Account with the Bank that invests in TBills, or whatever. Cash is King, and run the numbers.....
The interest rate would be 4% variable I don't know if you're calling this "prime" I think it is. Otherwise I don't quite follow you as far as collateralizing the loan with my own Money / I still would have no cash??
Sorry I missed exactly what you were saying
Here is another idea and maybe this is what you are saying,
Take out equity [on personal residence] as collateral on loan for land, put collateral equity money in to an account that will give a good rate of return ,
ex--Tbills etc.