If I were to give you $70,000, what would you spend it on?
I hope you said real estate.
In the last year, Californians have made over $70,000 in equity. That means that if you bought your home let's just say three or four years ago, you're sitting on a ton of equity. That money is not doing you any favors being locked up and tied up in your property.
Now, I'm not saying you need to liquidate your asset and pull a bunch of money out, but wouldn't it be wise to take some of that equity out and perhaps buy an investment property?
A lot of us, when we think investment properties, we think apartment building, we think multiunit, but it doesn't have to be a big building. Here are some other ideas for you.
What if you bought a condo? Think about it, low maintenance, the HOA covers everything, it's a great rental. Usually people want to rent condos, and if there's low maintenance in there, then you have someone who could literally be paying the mortgage month after month. You can also buy a duplex, a triplex or better yet a vacation home that you can run as an Airbnb or Vrbo and part of the year, you and your family can enjoy that.
There are so many different things that you can do in real estate. You don't just have to have one property, and this is not a one size fits all. This does not apply to everybody, but for those of you out there who are interested in leveraging the opportunity, leveraging the fact that you're sitting on a lot of equity.
I highly recommend that you sit down with your financial advisor, your CPA, and you talk about what's a reasonable amount of money that you can pull out of your house to buy a second property or to buy an investment property. At the end of the day, making your money work for you is how you're going to be able to have free time to maybe retire one day.
The bottom line is that most millionaires and billionaires in the world let's be real, they own a ton of real estate. So, what are you waiting for?
If you have any questions you want to start a conversation, maybe get that investment property search going, let’s talk.
Don’t forget to catch up on my weekly show, Taya’s 2 Cents, where share my two cents on different real estate topics from buying and selling real estate, owning a home and more.