Originally Posted by columbus
Hello! I was hoping to get some ideas and opinions on my situation. I'm 33 and married with one baby. We have about $50k in cash not earning more than .5% or so and another $250k or so in home equity spread across our personal residence and 3 rentals. Any thoughts on how to put this money to work?
I would determine how much you need for an emergency fund (typically 3-6 months of living expenses) and put that amount in an online savings account that will earn 0.8 to 1.0% rather than 0.5%.
Do you have access to any tax-deferred accounts (401k, IRA, etc) or tax-free accounts (Roth IRA and Roth 401k)? If so, you could start contributing to them and use any excess of the 50k over what you need for emergencies to fill the gap.
The equity in rentals are already working - they are bringing in rental income. If you really want to you could borrow on the rentals if you have any borrowing capacity on them and use the proceeds to buy another rental, but I would try to keep the borrowing modest (say 65% or less of value for each property).