Need advice on refinance to start out
Need some advice on starting. I will be researching more but any help is appreciated. I'm in Denver and bought my house in 2008.
Currently, I want to refinance into a 15 year but now I'm thinking of taking 30 year and getting cash out to buy a rental property.
I owe 190k between primary and heloc. Want to get rid of heloc which is at 6.5%.
Wife (realtor) thinks house is worth 450k, I'm more cautious and say 400k. I'm not exactly sure what happens with heloc if I do a cash out and pay it off (will it still exist or does it close).
My thinking is take 300k cash out, payoff heloc will still leave me 110k to buy a rental property. I have to run numbers more but if I have to take less because heloc. I can use cash out and heloc to buy rental.
Eventually we want to rent the current residence out and upgrade so I haven't wanted a high mortgage on it.
In 6-12 months I would take out on second property and buy a 3rd one.
I have really been considering buying rentals in Midwest since I have family out there and Denver is pretty expensive at the moment. But will research that more later.
From what I have read many folks have refinanced their primary and successfully started out.
I have read a lot previously but have to catch back up. Any advice would be great. TIA