What's next after my first investment?

Question

I recently bought an investment property in 2019, a duplex to be exact. Property has gained some value:

-One unit was remodeled.

-I haven't refinance.

-Estimated home equity 90,537(could be more with upgrades after appraisal).

-Looking to refinance but haven't signed any papers yet.

-One unit is generating a estimated cash flow of 2,000 a month after expenses.

What are my best options? Looking to get creative with great advice fellow investors.

Thanks in advance!

James De Leon · Answer

@Carmelo Caceres,

The route you take whether to refinance out or pulling cash out depends on your goals and some numbers. How would it look if you refinance the Va loan into a conventional? Even though your rate might increase, I would say that you'd still be in a good position because of the amount of cashflow you get. If you cash out, what would be the pros and cons? I believe you can actually do both at the same time and scale faster, but that also depends on your risk tolerance. There are many options you can take to progress, but it really depends on your comfortability and goals.

Cory Lucas · Answer

$2,000 a month cashflow? You're killing it

What's the end goal with the refi? Just to get a better rate? Pull out money for next investment? Something else?

Carmelo Caceres · Answer

@James De Leon

Thanks for your input, very appreciated. I would say that my risk tolerance is high knowing the potential on the amount of cash flow I can get from the first property. My goal as of right now is to upgrade to a bigger property 3 bedrooms and up but it must be a property where I can get creative in two years which is the time a VA loan require us to occupy a property. In other words “house hacking”. I also have been looking into a IRRR refi but like you pointed out, I realize that the best way to find out what would be the best route is looking at some numbers in order to achieve my goals. Thanks again James!

Carmelo Caceres · Answer

@Cory Lucas

It’s definitely both, but I don't know where to start. Current mortgage is a VA loan and I don’t know what’s more beneficial; converting the current loan to a conventional loan and re-use a VA loan to buy another property or refi and pull cash out to buy another property. I don’t want to rush and make a mistake leaving better opportunities on the table.