Is this Re-Fi worth it?
I am just getting back 'into the game' after a decade long (unintentional) hiatus. I find myself second-guessing my decisions/strategy/reasoning. Would love any experienced wisdom or insights, based on the following:
- I own 2 4-plexes. Current loans about $190k each, current appraised as-is value about $825k each, current rate 4.5%
- I do not have w2 income and cannot qualify for a FMae/FMac loan
- Each building need about $50k in maintenance/upgrades which would allow me to increase rents about 40%
- My goals are cash-flow cash-flow and cash-flow; longer-term equity is also a goal
I have the ability to re-finance with the following (these are details for one of the buildings...I assume i could do the same on the other as well):
- 30 year fixed, 4%, $400k total loan amount (I could go higher but am concerned about the higher monthly payment eating into my cash-flow....not sure if I am being short-sighted on this??)
- The total cost of the re-fi will be about $17k (title, fees, appraisal, buy-down, origination, etc)
Here is my bottom line question....should i move forward with the re-finance? Those who are more experienced, what would you do?? Is the $17k cost of the re-fi worth it??
- I own 2 4-plexes. Current loans about $190k each, current appraised as-is value about $825k each, current rate 4.5%
- I do not have w2 income and cannot qualify for a FMae/FMac loan
- Each building need about $50k in maintenance/upgrades which would allow me to increase rents about 40%
- My goals are cash-flow cash-flow and cash-flow; longer-term equity is also a goal
I have the ability to re-finance with the following (these are details for one of the buildings...I assume i could do the same on the other as well):
- 30 year fixed, 4%, $400k total loan amount (I could go higher but am concerned about the higher monthly payment eating into my cash-flow....not sure if I am being short-sighted on this??)
- The total cost of the re-fi will be about $17k (title, fees, appraisal, buy-down, origination, etc)
Here is my bottom line question....should i move forward with the re-finance? Those who are more experienced, what would you do?? Is the $17k cost of the re-fi worth it??
TIA!
Laura