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20% down on my personal home. Refi?
Hi! Just like the title says , I put 20% down on my primary residence Feb'24. I used a lot of my extra cash for the down payment. Would it be a good idea to update it some , refi, and put that money into a cash flowing rental ?
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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If the rate and costs on your current mortgage are solid, don't rush to refi just to chase a rental; instead, consider a HELOC for flexibility, then only pull cash if you have a specific, cash‑flowing deal that works at today's rates with full expenses and reserves baked in. If you do refi, make sure the spread between your new payment and the rental's net cash flow justifies the reset and closing costs, and that you have a clear exit or BRRRR plan. Next step: underwrite one real deal with conservative rent, vacancy, CapEx, and rate assumptions; if it still cash flows with your HELOC or refi proceeds, green‑light it.