Rental Property Investor · Great Falls, MT · Member since 2017 · 29 posts · 24 votes
Hi Helpful Friends,
I need cash to purchase a home for my family. House hacking is not an option in this scenario ("if momma ain't happy...). I currently have a duplex as a rental. In order to get the cash I am considering either:
1. Cash-Out Refi the duplex: If I do this, with fees, etc my ROI goes down to 6% (currently at 12%) and I get just enough money.
2. Sell the duplex. If I do this, I get more money, but lose the investment.
My property is in a stable market with low appreciation, typically. The last few years has seen a big increase.
Omaha, NE · Member since 2020 · 611 posts · 665 votes
6y
Depending on your timeline, you would benefit from finding a lender who will give you a HELOC on the duplex. You could then use the HELOC to get in a new primary.
This enables you to hold the duplex and its cashflow with the current ROI and get into a new home. Unless you have less than 20% in the duplex, you'll find a lender out there who will approve you, but for these kind of financial products, it takes a while to get an appraisal. Appraisers tend to prioritize home sales over HELOCs.