Maywood, NJ · Member since 2017 · 9 posts · 2 votes
Hi,
I'm in some what of a dilemma in figuring out my best route on an investment property that I'm looking to buying. So I'm considering either taking a cash-out refinance on an investment property I own out right (valued at $335,000) cash back of approx. $246,000 (75% LTV its duplex investment) and using those funds plus savings ($69,000) to buy another investment property valued at $315,000 or I could buy this multi-unit investment property and get a loan up $236,000 (again 75%LTV on a multiunit investment property).
Based on these figures looks like my cash difference approx. $10,000. Am i missing any opportunities here to leverage up? I'm not interested in any heloc's or home equity loans.
I'm in some what of a dilemma in figuring out my best route on an investment property that I'm looking to buying. So I'm considering either taking a cash-out refinance on an investment property I own out right (valued at $335,000) cash back of approx. $246,000 (75% LTV its duplex investment) and using those funds plus savings ($69,000) to buy another investment property valued at $315,000 or I could buy this multi-unit investment property and get a loan up $236,000 (again 75%LTV on a multiunit investment property).
Based on these figures looks like my cash difference approx. $10,000. Am i missing any opportunities here to leverage up? I'm not interested in any heloc's or home equity loans.
Any advice or direction would be appreciated.
Depending on which talking head you believe, the Fed is expected to raise short term interest rates either twice or four times this year. While that doesn't have a direct affect on mortgages, we are seeing steady increases in interest rates (certainly since 2015). Given the strength of the economy, expect interest rates to continue to rise and because we are in a period of historically low interest rates (makes me crazy when I hear people whining about 5% interest) I would leverage the investment property AND get a loan for the multi unit new purchase. If it cash flows you win and if you have cash to purchase other properties while the rates are low, you win.