Need Advice! Cash-out refi & onboard a higher payment OR refi for more CF + HELOC

[William Kwong]

Hi BP Fam,

Having a bit of a dilemma about what to do with my current investment property. I have a triplex in North Jersey, where I currently owe $580,000 with a 7% rate. The mortgage company is saying my value is $1,050,000. If I refi into a DSCR with 6.9% at $780,000 (75% LTV) I could pull $200,000 cash for leverage, pay $6,600 vs my current $5,600 and possibly free up some debt for another owner occ purchase. Or pull it as a homeowner with 5.5% for $6,000 monthly and pull the $200K. I could also potentially pull $100K instead and try to still do a owner occ loan and get a $5,361 monthly.

I'm unsure of my goals now as it really was to achieve financial freedom with semi-active/passive income build-up but the thought of being able to leverage the cash is very intriguing to me. There's a chance that I could also add $1000 passive income monthly in addition to the $2,000 I net currently for this property. 

I'm thinking to honestly just HELOC it and do the refi when the time is right. I don't actively look for deals as much as I'm focused on my realtor business but it's also possible I don't seek opportunity because I'm not financially as ready as I would be with the $200,000 on hand + plus my other HELOC / cash on hand. I'd like to be open to more investment opportunities whether that be laundromats, other small businesses or properties for STR/LTR. I'm just a little lost on what's the best decision. Being less of a realtor would be ideal but I do enjoy it

(There are also obstacles with the HELOC and being approved for as much as I want to pull out based on DTI with my business and writeoffs/etc.)

Lastly, for context im far from my monthly passive income goal. I make a few grand but I’m only a 3rd of the way there. Feel sorta defeated at times but it’s only up from here. Just trying to figure it out. 

Any input or perspective would be really helpful.

Thanks all!

[William Thompson]

Quote from @William Kwong:

Hi BP Fam,

Having a bit of a dilemma about what to do with my current investment property. I have a triplex in North Jersey, where I currently owe $580,000 with a 7% rate. The mortgage company is saying my value is $1,050,000. If I refi into a DSCR with 6.9% at $780,000 (75% LTV) I could pull $200,000 cash for leverage, pay $6,600 vs my current $5,600 and possibly free up some debt for another owner occ purchase. Or pull it as a homeowner with 5.5% for $6,000 monthly and pull the $200K. I could also potentially pull $100K instead and try to still do a owner occ loan and get a $5,361 monthly.

I'm unsure of my goals now as it really was to achieve financial freedom with semi-active/passive income build-up but the thought of being able to leverage the cash is very intriguing to me. There's a chance that I could also add $1000 passive income monthly in addition to the $2,000 I net currently for this property. 

I'm thinking to honestly just HELOC it and do the refi when the time is right. I don't actively look for deals as much as I'm focused on my realtor business but it's also possible I don't seek opportunity because I'm not financially as ready as I would be with the $200,000 on hand + plus my other HELOC / cash on hand. I'd like to be open to more investment opportunities whether that be laundromats, other small businesses or properties for STR/LTR. I'm just a little lost on what's the best decision. Being less of a realtor would be ideal but I do enjoy it

(There are also obstacles with the HELOC and being approved for as much as I want to pull out based on DTI with my business and writeoffs/etc.)

Lastly, for context im far from my monthly passive income goal. I make a few grand but I’m only a 3rd of the way there. Feel sorta defeated at times but it’s only up from here. Just trying to figure it out. 

Any input or perspective would be really helpful.

Thanks all!

You’ve built a solid position with that triplex—don’t lose sight of that win. I’ve seen many investors in your shoes wrestle with the same tradeoff: short-term cash vs. long-term stability. The key is to weigh the cost of higher monthly debt against the opportunities you’re confident you can deploy the cash into. Sometimes a HELOC or partial cash-out is the right middle ground until rates shift, especially if DTI and write-offs complicate approvals. Don’t let the numbers make you feel defeated—you’re sitting on strong equity, and structuring it wisely can move you closer to your freedom goal.