Sell, refinance cash out, or hold

[Joshua Davis]

I have a house rented cash flowing 10 years left on a 15year at 4%. Home value $225k with owed at $135k. I want to invest more sooner then later and want to weigh my options. With the market the way it is atm. I can keep saving up to get a multi family as primary residence, sell the house to invest cash for more investments properties, or refinance with a higher rate to break even and use cash out to invest?

[Denise Supplee]

Hi @Joshua Davis. You’re in a strong position with equity and a low rate, so be cautious about giving that up. Selling could give you quick capital, but you'd lose a cash-flowing asset with favorable terms. Refinancing at today’s higher rates would likely hurt cash flow unless the new investment significantly outperforms. If your goal is long-term growth, the smartest move may be to keep the house, continue saving, and buy a multi-family as your primary with low down (owner-occupied financing). That gives you more leverage, better rates, and keeps your existing equity working.