Is it smart to cashout refinance just to do so?
Hello BP,
I'm considering refinancing my rental properties and was curious if anyone had any input on the situation...I own a vacation rental free and clear which is worth about $500k and brings in roughly $10k a month in rent. I also own a quadruplex that's worth about $1M with a $500k loan on it. The quad rents for $1800 a unit with my total PITI being $3700 a month (3.9% interest rate).
My question, is it smart to look into a cash-out refi for each of these properties even if I don't have an immediate need for the cash? I don't have any intention on selling the properties in the near future . My logic is that it might be smart to lock in a low 30 year fixed mortgage and to free up some of the equity for future projects.
My concern is that I don't have an immediate need for the cash. I'm already worried about my cash diminishing due to inflation...Scared to put it in the stock market and locating real estate deals is touch in this market. I have two vacant lots that I've wanted to build duplexes on but financing the project is tricky. Maybe use the proceeds from the refinance for the build and then refi the duplexes once they're complete?
Any input on refinancing to pull equity out and capitalize on the low interest rates is appreciated. Thanks!
I'm considering refinancing my rental properties and was curious if anyone had any input on the situation...I own a vacation rental free and clear which is worth about $500k and brings in roughly $10k a month in rent. I also own a quadruplex that's worth about $1M with a $500k loan on it. The quad rents for $1800 a unit with my total PITI being $3700 a month (3.9% interest rate).
My question, is it smart to look into a cash-out refi for each of these properties even if I don't have an immediate need for the cash? I don't have any intention on selling the properties in the near future . My logic is that it might be smart to lock in a low 30 year fixed mortgage and to free up some of the equity for future projects.
My concern is that I don't have an immediate need for the cash. I'm already worried about my cash diminishing due to inflation...Scared to put it in the stock market and locating real estate deals is touch in this market. I have two vacant lots that I've wanted to build duplexes on but financing the project is tricky. Maybe use the proceeds from the refinance for the build and then refi the duplexes once they're complete?
Any input on refinancing to pull equity out and capitalize on the low interest rates is appreciated. Thanks!