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Will using home equity to buy beach rental pay off?
Will using home equity to buy beach rental pay off?

Dear Liz: Eight years ago, we bought a fixer-upper in an up-and-coming neighborhood. Now it's mostly fixed up, and property values have soared. We would like to borrow against the equity to buy a beach house we could use and also rent out. This would be a long-term investment. We already own one rental property that is turning a small profit. Managing it allows me to bring in much-needed extra income while staying home with my children. I want to increase that income with a beach house we can also enjoy. Is this a smart use of home equity? Answer: It may be. You've got some experience as a landlord, so you understand what's involved in maintaining and repairing a rental...

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