TBT: Ask Marco - Is it Better to Use Our Cash or Home Equity to Invest in Real Estate?

Passive Real Estate Investing

Real Estate Investing with Marco Santarelli, Investor and Entrepreneur.

Business:investing, Education, Entrepreneurship, How To, Investing, Business

4.8 • 953 Ratings

🗓️ 6 November 2025

⏱️ 13 minutes

🔗️ Recording | iTunes | RSS

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Summary

Click Here for the Show Notes In today’s Throwback Thursday episode of Passive Real Estate Investing, Marco answers an insightful listener question from MJ — a common dilemma for many investors looking to grow their portfolio. MJ asks whether it’s wiser to use cash for a 20% down payment on a second home or vacation rental, or to tap into home equity and keep cash invested in the stock market and other assets. Marco breaks down the decision from every angle — liquidity, leverage, risk tolerance, tax benefits, and expected returns — helping you think like an investor, not a speculator. Whether you’re eyeing a short-term rental or a long-term income property, this episode is packed with timeless advice on how to make your money work harder and smarter. 👉 Tune in now to learn how to evaluate your investment options and make confident, data-driven decisions — and don’t forget to subscribe so you never miss an episode that could change the way you invest! -------------------------------- Throwback Thursday Episode (The episode originally took place in the year 2020) This episode is part of our Throwback Series and may include references to older content such as web classes, events, promotions, or links that are no longer active or available. While the conversation and insights still hold value, please note that some information may be outdated. -------------------------------- If you missed our last episode, be sure to listen to From Bay Area Burnout to Monthly Cashflow: How One Mom Cracked the Out-of-State Investing Code Download your FREE copy of: The Ultimate Guide to Passive Real Estate Investing. See our available Turnkey Cash-Flow Rental Properties. Our team of Investment Counselors has much more inventory available than what you see on our website. Contact us today for more deals.

Transcript

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0:00.0	Welcome to passive real estate investing, the show where busy people like you learn how to build
0:05.7	substantial passive income while creating wealth for the long term. And now, here's your host, Marco
0:11.7	Santorelli. Hello, my friends. Welcome back to passive real estate investing, where we dive into
0:17.8	the world of real estate investing, among other related topics, to help you with your real estate investing journey.
0:23.6	Today, we're doing something a little different.
0:26.3	We're going to take a trip down memory lane and showcase an important episode from the past on what we call our throwback Thursday episode.
0:34.6	Now, whether you've been with us since the beginning, which goes back to 2015,
0:39.0	or you're tuning in for the first time, this episode is a must listen. We are revisiting one of
0:45.3	our more popular episodes from the past. And believe me, what we discussed back then,
0:50.3	whether it's six months ago or six years ago, is just as relevant today.
0:55.2	So sit back, relax, and let's rewind the clock for this great episode. Enjoy.
1:01.2	Now, today's question comes from MJ, and MJ says, hi, Marco. Like many listeners,
1:06.6	I recently came across your podcast and love the concise and to the point information.
1:11.5	I even spoken to one of your advisors.
1:13.7	Well, thank you for that, MJ.
1:15.5	So your question is, I'm looking to buy a second home slash vacation rental and we have
1:22.1	enough cash to put down 20%, but I'm wondering if it's worth taking out home equity on our primary and put it to work
1:30.4	and keep our cash in stocks and other investments. Thank you. All right, MJ, it's a good question
1:36.4	because I think whenever we have multiple options, we always sit back and think about which of
1:42.9	those choices are the better, more prudent choice.
1:47.1	In other words, which one is going to give us the greatest return and put our money or our
1:52.3	equity to work the hardest for us. So at the end of the day, it's a matter of just laying
	...

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