Investor · SLC, UT · Member since 2017 · 3 posts · 0 votes
Thank you all in advance.
I own a fourplex that I have had for 5 years now. Interest rate is currently 6%. I make about $900/month profit currently. I am in the middle of a refi set to close next week. I can do one of the following scenarios and have spent the past 3 weeks on the fence about the decision and need your help.
1) Refi to 4%, 30 years. Will make about $1,200/month profit
2) Cash out refi to 4.125%, 30 years, can take out 140K cash. I will now barely be breaking even each month and probably be about $50/month underwater in the winter months from the snow plowing.
I'd be happy with the monthly profit and use that towards my own primary mortgage, but it is not necessary. I'd be happy with the cash out because I could use that for another rental, or more importantly, to put it towards our "forever" home. It would be nice to get the wife and kids into a house we love and settle down, but again, not necessary at this time. I'm stuck...
Rental Property Investor · Aiken, SC · Member since 2019 · 129 posts · 44 votes
6y
I'm doing a cash out refi on one of my properties. I will then have enough equity to pay off an existing 5 unit. Next, I'm doing a commercial LOC against my newly paid off property. This will give me access to a couple hundred thousand cash. I'll take that cash and buy more rentals. So, to answer your question, I would do a cash out refi and buy more. All of these transaction are already approved and scheduled for august. Just consult with the lender and let them know what you want. I went over a legit business plan with my lender and they helped me navigate to this based on what I wanted.