Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
6y
As long as you get enough cash out of the refi for the DP, and as long as the original property you are refinancing still cash flow (and I don't mean barely cash flowing), this could be a good idea for you. You would have to see the actual numbers...in the form of $$$$ NOT percentages.
Omaha, NE · Member since 2020 · 611 posts · 665 votes
6y
Depending on how much equity you have in the duplex, you'd be far better off finding a bank that will give you a Home Equity Line of Credit (HELOC) on the property.
By getting a HELOC, you keep your money, instead of giving it back to the bank, you save the 5- to 6% fee for refinancing (a cost of multiple thousands) and instead pay only a small processing fee and the cost of an appraisal, and once you've obtained another investment property, you can continue to use the HELOC, ideally to pay off the mortgage balances you have at a much faster rate without changing your spending.
Look into Velocity Banking for an in depth explanation on how the debt snowball works. WiseGuysInTies, Denzel Rodriguez, and the Kwak Brothers are all excellent resources to learn more. It will change your life. Best of luck!
Real Estate Investor · Tampa, FL · Member since 2016 · 54 posts · 15 votes
6y
I'm still newer, but most banks I've talked to won't do a heloc on an investment property. We refinanced one of our rentals to get cash out for investing.
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
6y
As long as you get enough cash out of the refi for the DP, and as long as the original property you are refinancing still cash flow (and I don't mean barely cash flowing), this could be a good idea for you. You would have to see the actual numbers...in the form of $$$$ NOT percentages.
Flipper/Rehabber · Member since 2020 · 11 posts · 1 vote
5y
@Deborah Repaskey
Good evening!
How did it turn our for you? Is this something you recommend as I am currently looking to refinance my primary/income property(i live downstairs rent upstairs). Wondering if this is something I should move forward with. Thank you!!
Lender · Nationwide Lender · Member since 2019 · 391 posts · 140 votes
5y
@Joseph Saez
A primary residence, 1 unit would allow for up to 80% LTV. Rates are low right now but I cannot post specific rates on here. Get in touch with a mtg statement and I will quote it out tomorrow for you.
I don't do helocs, but they typically are going to come with a higher rate and slightly higher LTV but that has been affected lately with Covid. I always recommend doing a cash out and then a heloc after to capture any more money you might need. I usually can send all the docs to the heloc lender for a a qwick turn around.