REFI, HELOC or neither??? Please help a newbie out!!
Hey everyone,
So i'm trying to buy a multi which I will live in one unit and rent the others. I have a property back east where I grew up (Jersey Shore) with no mortgage and currently on the market for $325k. My original plan was to sell the property, pay back my debt and take the remaining cash and start buying out here. Since I tend bar, I can't get financing so I was pretty much set on buying REO's all cash. Unfortunately, the unit isn't selling and I'm really itching to buy my first property out here so I was thinking on taking it off the market, renting the unit (where I can get back $1800/m). I'm a young guy at 25 so my options are limited but I'm really ready to get into the game.
Should I refi the property and take that cash out to buy a property? Should I try to get a HELOC? Neither and just let the property cashflow?? What do I do??
Most Popular Reply
In that case, I'd price it to sell, given that if you rented it out it would have terrible cash flow from a rental aspect. Make sure it's in great condition and updated if it needs it. Take what the market will give you at today's price and reinvest that money at today's wholesale pricing. Don't be attached to a preconceived number of what you think it should bring. Let the market decide, so you can redeploy your cash in properties that WILL make money.