When Does Refinancing Actually Make Sense?
I've been thinking about the difference between having equity and having a reason to use that equity.
Suppose an investor owns a property with significant equity.
What would make you consider refinancing?
Would it be:
- Funding another acquisition?
- Improving an existing property?
- Consolidating debt?
- Improving cash flow?
- Building reserves?
- Something else?
Personally, I think the purpose of the capital should be evaluated before the refinance itself.
Curious how other investors approach this.
What has to be true for you to say, “Yes, this refinance makes sense”?