Equity in primary residence for first rental
Hello All,
My wife and I are newbies and are looking to get into the rental/flip market here in Charlotte, NC. We were thinking of doing a cash out refinance on our current primary residence to fund our first investment property. We’ve been reading a ton and the BP podcast have been very informative, but we really don’t know if this is a good idea to get our real estate investment business going. Any feedback and/or suggestions would be welcomed!
Thanks so much for taking the time to read this!
Omar Johnson
Most Popular Reply
Depending on the terms of your current loan, interest rate, payment, remaining term, etc. Instead of a cash out refi at current rates it may make more sense to get a home equity line of credit or home equity loan. Yes there is a little more risk with a HELOC due to fluctuating interest rate but if your current loan has low fixed rate and new loan would increase that it might be a better option.