Cash out Refi Nets Me $400k, how to put it to work?

6 Replies

I can put a mortgage on a second home which I own free and clear. I’ll get $400k at 3.85%

I’m a newbie and interested in multi family. How do I invest to be sure the investment can pay the monthly mortgage payment for me? Ideally as a lp with the ability to learn from the GP??

Are their deal structures that for example would pay me out 8% a month to cover the mortgage payment with some extra for cash flow?

My current salary cannot handle another mortgage payment so I need the deal to cover it about 60-90 days in.

Advice is appreciated.....

Originally posted by @Matt Stricklen :

What about a line of credit instead of a mortgage. Use just enough to BRRRR a property, rinse, repeat.

Second this. Instead of an inflexible long term mortgage take a look at flexible HELOC options. That way you can throttle how much cash to pull out (and the corresponding payment) depending on your salary, the deals you have to work on, etc.

Hey @Louis Zameryka In terms of ensuring your next property cash flows you can simply put more money down on it. With 400k available you are not restricted to the typical 25% down payment that most investors face. Simply put more down 35%, 50% etc then run the numbers that make sense for you. 

@Joe Norman Hi Joe, Thanks for the reply.

I’m not interested to work on the property, I’m interested in being more passive. Would you recommend multifamily syndicate or jv to meet my needs?

Hey @Louis Zameryka That really depends on your market. The price per property will determine what building you shoud buy. It sounds like you do not want to do any work on the buildings. That being said If I were you I would do a higher downpayment amount on a small multifamily and hire out a property manager. you could also do a syndication for a completly passive deal with lower returns and less worry.

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