Hi all. New here doing a lot of reading, listening, and learning.
I bought my first four plex about two years ago and have been “living for free” since. I am getting ready to do number two.
Here’s my question:
I purchased my fourplex via FHA and owe 240000. I paid 285000 for this property. After some investment, this house is worth approximately 375. Is it wise to refinance? Cash out?
I got a little lax this last year and a half with some other ventures aside from RE. I am back on track and hungry with this RE again though. Full steam ahead.
Looking for some opinions here is all. Thank you all very much.
Cash out would be good option if you are ready to spend that money somewhere else. You have equity and you are paying MI so cash out would be good option.
Hi! @Bradley Miller At a min a refi would help you eliminate the PMI. If you are intending to buy an another owner occupied property, then be careful as to how the refi is done. If it is done an owner occupied refi, then it can potentially lock you out of another owner occupied loan for 1 yr (generally speaking, there are some exceptions).
Hi @Bradley Miller , have you thought about getting a HELOC? I like this product because you only pay interest when you are using the money. If you refi, you will be paying interest on the entire loan amount, whether you use the cash you got out, or not.
You can find banks that will do HELOCs with a LTV up to 80-90% and great terms (I have one at prime -0.5% for the first year and prime + 0% after the first year).
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