Starting Out

User Stats

2
Posts
0
Votes
Jesse Graves
0
Votes |
2
Posts

Should I Refinance or get a Home Equity Line of Credit?

Jesse Graves
Posted Oct 15 2022, 07:49

I recently bought a home in September using a USDA Rural Loan and Secured a 4.5% interest right before the hike. The homes purchase price was $157,500 and appraised for $165,000 so I purchased with some equity. I want to get to a point in 2 years where I can rent the property out and perhaps refinance and cash out to then purchase a Multi-family. However, with the market rates It doesn't look feasible in the coming years. I had a goal to own 3 rentals by 26 and I am 22. Would it still be smarter to wait for a refinance and cash out when rates drop or pull a home equity loan here in a year to put down on another property?

User Stats

2
Posts
0
Votes
Jesse Graves
0
Votes |
2
Posts
Jesse Graves
Replied Oct 15 2022, 07:50

Or should I save up cash and forget doing any refinancing and purchase a Multi-Family in a normal manor without the use of my first properties assets?

User Stats

21,083
Posts
31,967
Votes
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
31,967
Votes |
21,083
Posts
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied Oct 16 2022, 04:40
Quote from @Jesse Graves:

With the way the market is headed, you're unlikely to have that much equity in the home after a year. I suspect home prices will continue to drop and you'll lose some of what you gained at purchase.

Keep hustling, sacrificing, and saving. You can always house hack up to a fourplex, which is what I almost always recommend for a young person. Spend the next year reading up on it, saving, studying how to manage rentals, and preparing for the next move.


  • Property Manager Wyoming (#12599)