Where Do I Start?
my situation is this: due to the crazy housing market jump in prices in the last ten years in the bay area and the low interest rates now, I find myself with a lot of equitty which It seems I should invest in certain growing and still affordable areas about 200 miles from where I live. Can I Borrow from the equitty of my properties and not worry about cash down payments. Im thinking rental properties. Thanx for any input I dont know where to start. <IMG SRC="images/forum/smilies/icon_confused.gif"> [ Edited by arbrlvr on Date 07/13/2003 ]
You can certainly borrow on your existing property, which allows to you retain it and acquire other rentals in a different market without incurring capital gains. However, the Bay Area market is such that you might want to consider locking in your profits by selling and acquiring property in a market that would give you more appreciation as well as a better cash-on-cash return. You can do a 1031 exchange in order to defer your capital gain taxes.
Best wishes.
[addsig]