Cash Out Refi or Sell

1 Reply

Looking for some BP wisdom and support! 

I'm a buy and hold investor in TN. I have a property I bought in 2018 for $175,000 and I have a loan on it for $133,000.

Realtors are telling me I can easily get $220,000 for it if I sell, however, I just re-signed my tenant until next May and for multiple reasons I don't want to sell until she's out. 

So I looked into doing a cash out refi. The appraisal just came back at $205k (I guess cash out refi appraisals are lower than estimated sales prices?) and I'll get $14,000 in cash at closing with a new loan of $153,000. 

I'm tempted to take the cash and keep the investing going and just continue to hold this property. 


Thoughts? 

What are the closing costs and interest rate for the existing and new loan? Doing a refinance to get $14,000 alone doesn't seem worth it to me. If the rate is considerably lower, the closing costs are reasonable, or you have another project lined up and you really need the $14k it could be worth doing.