No. of Recommendations: 0

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
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement