How can I improve cash flow through alternative funding.

Question

I have a property with an interest rate just under 3%. The remaining loan balance is around $180k, I also have a HELOC on the property with a balance around $50k. Since it is a variable rate, I pay around $400 a month in interest. I have the property rented now and want to improve my cash flow by reducing that $400 a month in interest. I don't want to refinance the mortgage and roll the HELOC amount into it. Any suggestions on how I could reduce the amount of interest that is going to the HELOC?

Chris Seveney · Answer

Best way to improve cashflow is to reduce debt. I know it sounds simple but you are not going to really be able to extend 2nd position debt as most lenders do not refinance out of it.

JooYung Choi · Answer

Piggybacking off Chris, to improve cashflow, have you considered switching to an MTR model? More upfront cost to furnish and more management required but you will get more cashflow

How can I improve cash flow through alternative funding.

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