Updated almost 10 years ago on . Most recent reply
Leveraging
I purchased a couple residential investment properties (single family homes) 6 years ago and refinanced for 15-year terms. Now, I would like to leverage my money and have been advised to consider refinancing some of the equity out of the houses in order to purchase additional properties. Sounds like a great opportunity for me to grow my portfolio but I only have 13 years left on these mortgages at 3.25% and not sure if it is still a good idea and pull out equity or wait and pay off for cash flow in 13 years.
Most Popular Reply
@Rhonda Green If you do refinance and invest the funds, will the return on investment justify the costs involved in the refinancing and the higher interest rate?
Also, if you do refi, what's the spread between your monthly debt payments and your rental income? You want to have the ability to lower rents if the economy takes a turn. If you don't have a margin of safety, your investments can turn into cash flow killers.
Good luck.