The offer on my 2nd buy & hold deal was accepted today. I offered cash, but should I do a cash out refi after closing?
3 Bedroom/1 bath
Annual Income: $8400 Gross ($7728 with 8% vacancy) Tenant in place @ $700/month
Prop Taxes: $675
Total expenses: $2195
Congrats on the 2nd deal.
If you can qualify for a cash out refi & want to continue to use the funds for more investing I see no reason not to refi it out.
AWESOME! Congratulations on the success. I agree with @James Wise on the use of leverage. If the cash flow will still make sense, then I would go for it.
Kevin, congrats on the 2nd deal. Way to go!
I would say the same exact thing James Wise mentioned. If you want to continue to purchase property then yes, you should immediately refi and get the cash back to move to deal #3. It's great to have cash to buy with, always makes things so much easier and faster in addition to almost always getting a better price.
Even if you don't "plan" on buying another right away you never know when an opportunity will present itself and in order to be prepared to take advantage of those times they end up in your lap/face, you should be prepared to pull the trigger and execute!
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