Hey guys, I'd like your advice. I bought a property in Aurora, CO a couple of years back with the intention of living there. I bought and rehabbed it and was forced to move out of state due to a job change. I'm currently renting out the property with a pretty good cash flow and have roughly 60k in equity in the property through appreciation and the rehab. That being said, I'd like to purchase another property here in Las Vegas, using the BRRRR strategy, however I'm questioning if it's worth sacrificing a good chunk of monthly cashflow to fund my next deal. (Especially since I'll only get roughly 40K back after the refinance). Any thoughts?
the question is are you using your money to work for you?
can you take this 40k and ear more than the 20k that you will lose by refinancing?
This really all depends on your next investment property. This is a common strategy in order to get enough cash to pay down payments for new properties.
does it also lower your interest rates? you may be saving the money on the back end?
I'm newer but possibly you could get an equity line of credit on your rental, finance the home in Vegas with a hard money lender, and then refi traditionally? Lots of variables. But just a thought to get the wheels turning
unfortunately I can't go that route, I tried. They won't offer a heloc loan on a rental property. I could refinance, but 40K just isn't enough to finance a deal/rehab in my opinion.
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