How to Best Leverage $500k in Equity for Additional Income

Real Estate Investing
1

I purchased a two-family property in 2017 and now have around $500K in positive equity. My goal is to leverage that equity for additional income. I’m a full-time sales professional at a global GSI, so I’m seeking relatively efficient strategies.

Has anyone successfully used cash-out refinances, 1031 exchanges, or other equity-based approaches to boost income? I’m also open to exploring short-term rentals, private lending, or passive investing in funds—anything that maximizes returns while keeping risk and time commitments manageable.

For context, I’d consider leaving my job if this could become a full-time venture that surpasses my current compensation (low-mid six figures). My father is a certified contractor in NJ—he’s built one home, flipped four, and consistently handles upgrades and maintenance for me.

I’d appreciate any tips or stories from those who’ve turned equity into a profitable venture. If this isn’t the right forum, please let me know and I’ll remove the post. Thank you!

2

Given your strong equity position and interest in boosting income with minimal time commitment, I believe short-term rentals could be an excellent strategy for you. With your background in sales and property management, you’re well-positioned to either convert part of your two-family property into a short-term rental or leverage your equity to acquire new properties in high-demand areas. The potential for increased cash flow, combined with the option to hire a property manager for hands-off operations, makes this a great choice. Best of luck in your venture—I’m sure it will pay off!