DSCR, cash out Refi, Or something else...
I took out a HELOC on my house to buy another property. I completely remodeled it and added square feet to the property to increase the value. The property is rented. I would like to pay off the HELOC, but I'm not sure which direction to take. DSCR loan, cash out refi. The important thing here is that if I take out debt on the property, it has to remain at the same value that I'm paying on the HELOC. Or should I continue with the Heloc until I sell the property? If I sell I will have to pay a lot of money in taxes since the ARV Increased.
Can anyone here please help me? Suggestions.... Thank you.
Most Popular Reply
It depends on your goal.
If you WANT to sell the property, don't refi just sell as the cost will not outhweigh the savings.
But if you want to keep the property, you'd want to do a cashout refinance and get into a long term loan :)