Refinance To Regain Downpayment Cash (with numbers)
I've posted about this before somewhere but can't find it at the moment. I have a SFR rental property that I purchased prior to becoming a BRRRR aficionado. I'm at the point now where I need to refinance the property to move it from my personal name to my LLC and attempt a better interest rate. So according to my numbers below, is it a good deal or not? I'm leaning towards yes as I recoup some downpayment and cover some needed repairs. Using the numbers below, I would regain approximately half of my downpayment in addition to financing needed repairs (windows and vinyl siding) for the property. I have a long term tenant and will be increasing rent next lease renewal. Thanks for your input.
| Current Appraisal | $55,000 | ||||
| Current Cash Invested | $11,776.82 | ||||
| Current Debt | $38,873.62 | ||||
| Current Mortgage Payment | $ 312.05 | (including taxes/Insurance) | |||
| Current Rate | 6.375% | ||||
| Current Rent | $ 575.00 | ||||
| Current Cashflow | $ 262.95 | ||||
| Taxes | $ 36.58 | ||||
| Insurance | $ 25.00 | ||||
| Estimated Repairs | $ 14,000.00 | ||||
| Total Investment | $ 64,649.00 | ||||
| Estimated New Appraisal | $ 75,000.00 | ||||
| New Finanance Amount 80% LTV | $ 60,000.00 | ||||
| Est. New Mortgage | $ 360.00 | 60K @ 6% for 30 years | |||
| Taxes | $ 40.00 | ||||
| Insurance | $ 25.00 | ||||
| Est. New Payment | $ 425.00 | ||||
| New Cashlfow | $ 150.00 |