Refi cash out vs flip

2 Replies

I am interested in hearing what you guys think about refi and pull cash out vs flip.      It seems like a refi makes more sense .    You hold you asset and get money to move on to another deal with a refi.     

The flip seems like you are always chasing your money and never have a consistent flow of cash.        

@Rick Dig - cashout refi works well if you want to hold the property as a rental and the property will cashflow as a rental (many do not). I've found it easier to refi than to sell, but you won't be able to recoup as much cash doing a refi. You'll likely need to have 20% LTV and 6 months of seasoning so those could be hurdles depending on how long the rehab takes and how much money you're wanting to put into the next project.

If your trying to build a portfolio refi is a good option, however, as previously stated you will need seasoning. One hint, always make sure the dal works & makes sense:)