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Taylor White
  • Rental Property Investor
  • Fort Worth, TX
29
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35
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Cash out refi to buy rental property?

Taylor White
  • Rental Property Investor
  • Fort Worth, TX
Posted Jun 17 2019, 09:56

I’m looking at a property in my neighborhood that is turnkey and just dropped down to $115k. I don’t have cash for a 20% down payment, but I was considering doing a cash out refi on my first home (which is already a rental property.) I don’t know much about cash-out refi’s, so let me explain what I think I want to to do, and you all can tell me how misguided I am! Haha

I owe $80k out of the original purchase price of $92k on my first house, but I think I could easily refi for $110k-$120k. The result would hopefully give me enough cash in hand to put 20% on the new property and cover closing costs. Would this be a good way to acquire my 2nd rental?

I appreciate any feedback!

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