To refi or not

2 Replies

Hi Guys -

First real post here. Here goes:

My vacation rental has appreciated very well and is now worth around 400k. I currently owe 170k. My interest rate is 4.5% 30 year.

I want to continue to grow my portfolio of properties. For my next property would it be wise to refi and take equity out of my VR and use that money to acquire other properties? Or would it be better to leave that equity alone and search other avenues?

I am trying to cover all of the angles on both the pros and cons.

This will also help me pitch it to my wife as well ;)

Thank you very much,


Yes, refi and access money now while its this cheap! Plus the rate and cost for the Vacation home will be lower than the rate and costs of investment property mortgage loans.

If possible, I'd look at doing e HELOC up to about 80% too and weigh out what option would be best depending of how many and what price range properties you want to purchase and if you want to flip or buy and hold.

there is no clear answer but your ltv is under 50% id say at that point your roi is worse than the stock market. take your gains off the table and releverage into something bigger you earned it.

ps tell the wife that having that much equity in the property is a huge liability esp in sue happy ca

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