To refi or not to refi

2 Replies

I'm torn of whether or not to refi my rental to purchase another house. Details:

-I owe 56k and it's worth 110-115- probably be able to pull out about 35k and buy a house cash for another rental
-10 year mortgage with approx 7 years left
-Currently rented @945 which is basically a wash w payment taxes insurance etc.
- rented out to a fantastic tenant
-A- area - best area in bay city Michigan

I really think I want to wait the seven years and have a 120k house free and clear renting at 1000 per month and I'll be 36 years old at the time. $35k will allow me to buy a house in the b- c+ neighborhoods. I appreciate any comments you might have.

@Drew Denham  Here's another option.  There's a school of thought that fewer is better - especially when you own them free-and-clear.  How about selling the one you have and taking the proceeds to buy the other one free-and-clear.

@Drew Denham

I like to move a little slower than most and keep my debt low or at zero, sleep better at night and I know my house won't have a notice in the window! Lots of ways to go about getting another property without messing with the first...just my opinion.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.