Investing and Financing Philosophy
Hi!
I purchased my first rental property for $610k (duplex) using an FHA rehab loan. I also obtained a private money loan with an 11% interest rate to fund the rehab in the amount of $65k. The income from the rental property is cash flowing to my satisfaction (~$288/door). It's been about a year since the purchase and I am now ready to invest in my second rental property using refinancing of the first property. I wanted to get thoughts/opinions on whether to pay down the private money loan with cash obtained from refinancing my first property, considering the 11% interest rate? Or just keep moving forward acquiring rental properties considering the rental income from the first property is covering mortgage and the private money loan payments and is still cash flowing.
Thanks!