Refinance my condo to pull $ out for investing OR sit tight?

Refinance my condo to pull $ out for investing OR sit tight?

Member since 2022 · 12 posts · 3 votes

Hi everyone,

I've yet to dive in.  Just moved out of condo & am renting it out.  Want to refi that condo to invest in multifamily.  I have $100,000 left on my condo loan and am netting $900.  If I refi to pull money out, my new much higher payment will mean that I'm netting nearly nothing.  Is it a good idea to refi to reinvest or just sit tight and enjoy the $900 passive income?  I'm about 5-7 years to retirement from education (not a money making career, but rewarding).

You're advise will be appreciated.  Ready to take a leap.

Lisa

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    4y

    ...or, sell the condo and reinvest into something that IS cash flowing.  Refinancing would only get you part of your equity...selling takes it all (minus closing costs only).

  • Member since 2022 · 12 posts · 3 votes
    4y

    Thank you.  It is cash flowing right now with $900 / mo.  If I refi, I'll have a higher payment and will net very little.

  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    4y
    Quote from @Lisa Tarin:

    Thank you.  It is cash flowing right now with $900 / mo.  If I refi, I'll have a higher payment and will net very little.

    Right, that's why refi won't work.  Keeping it as is loses you money.  What's the condo worth?
  • Member since 2022 · 12 posts · 3 votes
    4y

    If I kept it, it would continue to make me $900/mo.

    Only reason I'd refi is to add another property.

    It's worth about $425,000.

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