While I've gained some decent experience in the past five years buying and holding onto two triplexes, refinancing is still a mystery to me. I've read up on it and understand the basics but I wanted to run my situation by the forum and see if I could glean some wisdom as to whether I'm ready to head down the refi path with one of those triplexes.
On paper, I'm still about 20K from having 25% equity on the property. However, I've put about 40K into the building in the past five years and the result is a nice, updated, prior duplex turned triplex. So my first question is, should I have the building re-appraised? 20K is not that far off but....I am also trying to rebuild my reserve fund after my last remodel so it is just that much further off. I've never had either of my buildings reappraised and I am curious what the down sides of that might be. Higher taxes? High out of pocket cost? Should I leave a certain door open during the appraisal so that the building is still technically a duplex?
Secondly, what are some other metrics I should be considering but probably am not while looking to refi? Would it be better to wait until I hit the 25% mark rather than leverage the equity I've put into it? How should I be positioning myself financially before I start inquiring about the refi? Is it better to go through the bank that is holding my mortgage or through my trusted broker that found me the lender?
Too many questions to post here so fire away. Thanks!