Discount points on refi for (future) rental property?
If my intent is to convert our current home to rental when we upgrade and hold indefinitely (i.e., long past the break even date), is there any reason I wouldn’t want to consider purchasing discount points from the refi lender?
On paper it seems like a can’t lose, if we assume the property will be cash flowing on day one. Wanna help me pick apart the logic?
(For the time being, lets ignore the opportunity cost of burying 8-10K for purchasing the discount during refi instead of investing elsewhere. Let’s also assume adequate cash reserves on hand for personal and business emergency.)