Private Lending & Conventional Mortgage Advice
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated almost 4 years ago on . Most recent reply

Cash out refinance or wait for more appreciation?
Hi,
I have a property in Austin, TX that I just turned into a rental property and I have about 200K in the property. I am considering pulling some money out and either holding the cash until I find another property or just have extra cash on hand. My hesitation is wondering if there's enough equity to make a cash out refinance worth it as well as potentially waiting a year with how crazy Austin's market has appreciated. I am only 1 year into the 30 year mortgage at this point.
Any advice on whether or not this seems like a good strategy or if I should wait a little bit longer?
Thanks,
Daniel
Most Popular Reply

@Timothy Hero this has to do with residential refinancing in Texas, which is written into the Texas Constitution. They are called Texas Section (a)(6) mortgages, or cash-out refinances based on Fannie Mae and Freddie Mac guidelines. I misstated 75% equity must remain, it's 80% according to the guidelines. Commercial mortgages likely don't apply to this section.
- Ryan Kelly
- [email protected]
- 512-674-5478
