Refinance long term rental?
Property A (Georgia) nets $280 per month on a single family that has a 30 yr mortgage under 3% purchased in 2021. The value has since appreciated ~80K without rent rates increasing much in this area.
We currently live in Property B (Texas) and will be moving and converting this home into a long term rental as well. We expect to be near or just above break even on this property.
We will be moving this summer to Louisiana and will be purchasing a single family home there too with the intent to eventually turn Property C into yet another long term rental.
Considering the appreciation value of Property A, is it a wise move to tap into this equity and use a cash out refi to fund a 50%+ down payment on property C?
Other important factors:
1. I’m unsure if Property A will stay cash flow positive post deal.
2. Property C projects to net $1000/m w/ 30yr, $800/m w/ 15yr, or $500/m if refi is not done based on current local comps
3. I am excited by the idea of making additional principal payments on a 15 yr mortgage in the hopes of leveraging the extra rental income to snowball back into Property A’s loan balance down the road.
Is this a good idea for long term ambitions or am I being crazy?