Updated about 5 years ago on . Most recent reply
Refinancing from FHA to Conventional to rent 1 and House Hack
I am currently looking at refinancing my FHA mortgage and looking at different options. It's a 30 year fixed 3.375% I wanted to either look at a HELOC to pull some money out and use to purchase my first rental, but lately I've been thinking about another option.
I was thinking about refinancing my FHA into a conventional loan at the same or hopefully lower rate then I currently have in order to turn the property that I currently owner occupy into a rental property. I would want to use the cash out refi money if that's possible or just a new FHA loan to purchase another property to live in - possible duplex or triplex - to live in and rent out the other side.
The Duplex I'm looking at is new, it would not need any repairs so I don't know how much it would cash flow to begin with, but I would be renting one side and house hacking the other.
I am looking for anyone who may have done this. Does this sound like a solid plan? How do I do the numbers for my current home to see if it makes sense to rent it out? Any help would be appreciated.