We Have a Lot of Equity Tied Up in Our Homes. It Feels Like the Money Is Just Sitting There, Not Doing Anything. Should We Buy Rental Property?

We Have a Lot of Equity Tied Up in Our Homes. It Feels Like the Money Is Just Sitting There, Not Doing Anything. Should We Buy Rental Property?

Adrian Volenik

Tue, August 11, 2026 at 6:46 PM GMT+3 6 min read

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A couple who own both their primary home and a lake house outright wondered if they were overlooking an opportunity. With hundreds of thousands of dollars in home equity, they felt like their money was "just sitting there" and considered borrowing against their lake house to buy rental property.

Drew from Missouri recently shared the question on "The Ramsey Show," explaining that they wanted to build more wealth after getting a later start on investing. Their idea was to tap into the equity in the vacation home instead of leaving it unused.

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A Paid-Off Home Doesn't Have To Earn You Money

Co-host George Kamel challenged the way the couple was thinking about the lake house. He pointed out that it was never purchased as an investment.

"It's not an investment and therefore it doesn't need to make you money," he said. "It's just for you to enjoy."

The couple, ages 38 and 39, use the lake house almost every weekend and described it as their main hobby. Kamel said that matters because the property already serves the purpose they bought it for.

He also warned that taking out a home equity loan would put debt back into their lives after they had already paid off both properties.

"What happens is now you're moving backwards," Kamel said. "Now the lake house is on the block. You got a new payment in your life to try to do this again with another rental property."

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The conversation soon shifted to the couple's broader financial picture. They earn about $145,000 a year after taxes, invest roughly $68,500 annually and have already built an investment portfolio worth about $224,000. Aside from about $6,000 still owed on a boat, they're debt-free.

Looking at those numbers, Kamel estimated that if they simply continued investing at the same pace, they could accumulate around $7.4 million by age 60.

"You don't need to rush this," he said.

Real Estate Can Still Be A Powerful Wealth Builder

Kamel's advice was specific to Drew's situation. With two paid-off homes, a high savings rate and millions of dollars on pace to accumulate through investing, he didn't see a reason to borrow against a property they already enjoyed.

That doesn't mean real estate isn't a powerful way to build long-term wealth. Rental properties have helped many families create steady income and build assets they can eventually pass on to future generations.

If you like the idea of investing in real estate but don't want to manage renovations, tenants or contractors, Arrived offers another option.

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The platform lets you buy fractional shares in professionally selected rental homes while the company handles everything from tenant interactions to maintenance. Arrived selects properties with the goal of generating rental income and growing in value over time, giving investors a way to add real estate to their portfolios without becoming hands-on landlords. You can also earn monthly dividend payments.

Start investing in real estate through Arrived with just a few clicks while the company takes care of the day-to-day work.

"You guys have done really, really well and you've set yourself up for success," co-host Jade Warshaw said. "There's no reason to really change the recipe now."

"[Personal finance expert] Dave Ramsey's got a lot of properties," Kamel added. "He's got a lakehouse that he loves. He does not look at it and go, 'Man, there's a lot of money just sitting in that lakehouse. I'd like to have that.'"

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Building Wealth Across More Than Just the Market

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.

Arrived

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors canbuy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

Realberry

Institutional-quality real estate has traditionally been difficult for individual investors to access.Realberry gives accredited investors direct access to private real estate opportunities backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests.

FarmTogether

Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors,FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.

Immersed

Immersed is building technology for the future of work through spatial computing. Known for its AR/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing.

Fundrise

Private real estate and private credit can add income and stability to a stock-heavy portfolio.Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.

Mode Mobile

Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day. Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte's fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.

EquityMultiple

For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.

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