How much equity should I pull out?
My mom has two 4-unit townhomes worth ~1mill and I am attempting to lower her interest rate and pull out equity.
So it looks like I can probably cash out refinance up to ~$400K-500K. With that cash, I would like to start investing into RE, however, I want to take out the right amount of cash (not too little and not too much). For me to get approved for future conventional loans on purchases, what do you think I should take out?
My business plan was to invest in one property (buy-and-hold) either SFR or MF in the SoCal region (undecided on purchase price but probably between $200,000 - $400,000?).
Property value to rental income is pretty terrible in SoCal (a $300K home may rent for $1600). Once we get our feet wet, we will probably jump into better cash-flow markets.
Here's some more info about my partner and I's financial situation:
I work as a pharmacist and make ~$9300/month in pre-tax income. I have ~$1000-4000 in cash/savings at any given time. My student loan debt will be wiped to zero soon using that refinance money.
My partner/cousin Phil, works with his family on a Viet sandwich shop business/wholesale but they just moved from Canada so they do not have much on paper as far as income.