How to use the equity in your home! #investing #realestate #shortvideo #shortsvideo #business

26 Feb 2025 · 1 min

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Steve D Valentine explains how he used approximately $500,000 of home-equity (a home equity line) to buy a second home in Buffalo, New York. The purchased property functions as a rental in his investment portfolio while also housing his in-laws, producing rental income that covers the equity payments; the arrangement yields tax benefits and has led to increased appreciation on the equity.

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How we utilize the equity in our home. After many years, we actually we had an equity line for about $500,000 against the property. It's debt equity. It's not doing anything. Now can you move that equity into something else that is going to increase and cover the cash that's out? So here's what it looks like. We took the $500,000 equity, we bought a second home in New York in Buffalo. As a, as a second home, it's also a rental property in our portfolio. Here's the trick that we did. We actually bought it. And Wendy's, my in laws, Wendy's, they live in it. It's a beautiful property. It was part of our retirement structure because they needed a home and we needed a place to keep our stuff when we went to Buffalo and we didn't want to buy a place that was going to sit. So we did a combined purchase. They live there, they maintain it. It's an amazing write off for us. And the rent from that property covers the equity payment that we borrowed from the property. So now the equity we had in the house is actually doubling in appreciation right now.