How to get money out of a house...

3 Replies

Hello!
Long time listener here if the bigger pockets podcast, first time poster!

My wife and I have a 3-BR home we are currently renting out that is completely paid for. Then we have our current residence on which we have a mortgage loan of $20,000 and a second lien of $20,000 through a HELOC.
My wife and I are wanting to generate more cash flow through another rental property. How easy is it to refinance our already paid for house and draw money out of it for another down payment?
This may be a REALLY simple idea, but I'm still a young newbie. Really wanting to acquire more but and holds, but getting my wife on board is another part of the story as well. We're in a thriving market and college town, and I'm wanting to capitalize on it!

Any help is strongly appreciated. THANKS!!!

@Tony Crabtree  

welcome to the site.

If you have good credit and income you should have a pretty easier time doing a cash out refinance.

The value of the home will also play a factor in the ease of getting the loan. If the home is 70k+ it will be extremely easy to find lenders who are interested. If it is worth less that number of interested lenders will shrink.

@James Wise thanks!!! Good to know. I asked my dad and he may seem a lot more complicated than that!

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