Refinancing Duplex - Purchased with Owner Occupied Loan
Background story:
Purchased a duplex with an owner occupied loan as a chance to enter the market and begin investing. Rental market is strong in my area (Bellingham, WA). I was looking for a humble beginning that could provide leverage to the 2nd investment.
The numbers:
4 % down on $380,000 (nothing! I know).
Rehab: $10,000.
Mortgage: $2,500
Each unit rents for: $1750/mo
$800 positive cash flow each month (goal was to break even - this has been a bonus)
Potential appraisal value of home now: $480,000
My goal is to refinance and put this rental into an LLC, but because I put so little down I am struggling to make sense of the numbers. I believe I am not the only one that begins investing with an owner occupied loan - making your first investment more achievable. Do people continue to refinance as if it is their primary home? This is the only way I believe could see positive cash flow. When do the numbers add up to refinance?