So, I am in Colorado Springs, to be honest, I was going to use my equity here to purchase a rental property, but the housing is just so expensive I am a bit worried it wont fulfill. What I am worried about is getting my equity loan plus rental mortgage getting paid. the average decent home is about 400k in Colorado springs now, while high 300s, people are offering 20k asking price.
What I am also scared is, market might come down or crash due to how fast the prices went up, so I am not 100% confident in colorado springs now (where I live)
Instead, I am not sure if it is a bit wiser to invest in an area where rent is high, but mortgage is low for people who finance, giving me wiggle room to either pay off the equity fast to give me even more wiggle room. issue is, I have no idea what states or cities to invest in. So I am hoping for some knowledge and expertise with about 120k in equity.
Also, if it helps, I am 34 years old and I am not trying to touch any of my personal money, but instead let the equity do the work for me.