Hey BP's. Happy to say, I have paid off one of my rentals entirely. I would like to hear what you would do. Personally, I'm interested in acquiring more properties, flips, investments. Would love to hear what others have done in this situation. i.e Refinance? Hold/Sell?
Thanks for your voice!!!
I think it depends on what you want to do from here. If you want to keep growing then I would look into a Refi, BUT (now this is just me) I would only get no more than a 50% cash out. I know you can use debt to your advantage but my mind set is to minimize debt as much as is reasonable. I know others would refi 100% in a heart beat, and thats an option, but its just not me. I don't want to have that kind of weight always on me. So a manageable amount I'm fine with, especially if I can pay it down quickly again from the new growth.
Another way is to just start saving the cash from your debt free property and use that. It might take a little longer to build up cash for your next buy but then you will always have a debt free income property. I would favor this route depending on how much cash it brings in. If I would have to wait 5 years to get enough for another deal then its not worth it IMO. But if you can get it in a year then I would lean towards that.
Anyways, my 2 cents. Congrats on a debt free property btw!