Updated almost 6 years ago on . Most recent reply
Should I pull out my equity or leave it be?
Hi everyone, I was hoping to get some opinions on what's the best route to take on this property. My first (and only) deal is a duplex with an estimated value of 65k. I own it outright and have roughly 42k invested. Being a low valued home, non owner occupied and rental property has left me with limited options of mortgage/HELOC/refi. I found a local mortgage lender that is offering decent terms but I'm not sure if it's worth taking. The terms are 30 yr fixed, 65k mortgage with 70% LTV, leaving me with 45.5k in hand (all of my investment and then some). But it's at 5.375% + 2.5 points ($1,125). Also, would have to pay roughly 3k in closing costs. The property is half rented and other side will be for rent this week (reno just finished). It cash-flows excellently with or without the mortgage. If I pulled the equity out, I could invest it into my next deal, otherwise I will have to save for at least another year to have enough saved to buy another property or should i continue to make the additional ~250/month and ~4k in hand. What sounds like a better path? Thanks