Today’s great question comes all the way from Canada.

My husband is a builder here in Canada. 

We own our home out-right, which he should be done building in February. 

We’re guessing the home should be worth around the million mark once we’re done. 

We realized that we put all our eggs in one basket by putting all of our money into our home. 

We really want to make passive income – enough to thrive off of in the future – but are not sure if we should pull any equity out of our home with such high interest rates. 

It’s our dream home, but the thought always goes in the back of our minds…

If after a couple of years (principal residence reasons) we should sell it and invest. 

– Hannah B.

Hi Hannah,

I appreciate you writing in.

Now, I’m not a licensed professional, so note that everything I’m telling you is based on 35+ years of real estate experience and it is NOT financial advice.* 

*See full disclaimer below.

If you had asked me over the last two years, “Should I sell my house?”

I would have said, “Yes, get your equity out of the home and move on down the road.”

In fact, Fox Business reported that tappable home equity in America grew to $11.5 trillion in September 2022.

And while homeowners were seeing record levels of home equity…

Most of these homeowners are unable to sell or refinance to unlock that equity…

Especially given the high interest rates right now, as you’ve mentioned.

So the window of opportunity for pulling equity from your home is closed right now.

You also likely can’t sell your house because you’re not going to get what you think it’s worth.

See, rising mortgage rates are locking many would-be buyers out of the market.

And as the housing market cools and a recession looms on the horizon…

Lower demand means less competition for your home, which in turn diminishes your desired sale price.

Also, remember that selling a house isn’t all profit.

There are closing costs and broker commissions you need to pay, among other fees.

So if I were you… I’d be patient.

After all, I don’t believe that interest rates will stay high for longer than the next 18 months.

The next time I get a chance to exit that single-family home… 

I would pull all my money out of it.

Also, I would carefully consider WHY I’m selling. 

If I don’t have a solid game plan, or if I worry I could be hit hard by the recession…

Then it may be smarter to hold off for now.

Because it doesn’t make sense to sell if I don’t know what my next play is.

I need to know where I’m going and how that money will be invested wisely.

For example, I would take all that money from selling the house…

And I would convert it into apartment plays that will likely produce tremendous cash flow.

I would also rent where I live.

I would rent a freaking awesome place and never own it…

Unless I get to a position where I can afford to own a place without debt.

So hang tight right now, and wait for interest rates to come down.

Before you know it, you could be in a much more optimal position to get in the multifamily real estate game.

Be Great,

Grant Cardone

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