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We've inherited a home with a small mortgage and have decided to keep it as a rental property vice selling it. This decision provided us with better diversification overall as our net worth didn't previously include much real estate.

That said, we're thinking of pulling out some of the equity in the house and dumping it into the market. We could pull out about 50k via a refinance with a lower rate and longer term without changing the monthly debt service/impacting the cash flow. The 50k would be dumped into the market via either an ETF on an index fund. We don't expect to draw on this money for another 8-10 years.

This seems like a smarter play than leaving all the equity in the house – I wanted to hear some foolish opinions on this plan – hence the post.

Any views appreciated – Tom in Congo
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