Can anyone tell me why I would refinance a house that's paid off?

[Abigail J Steinert]

I keep hearing people talking about refinancing houses that are already paid in full. Can someone please explain why I would want to do that?

[Chris Boyington]

@Abigail J Steinert

Big asterisk to this, I’m still new at this... but you are turning the equity in the “paid for” property in to liquid cash you can use to go buy more property. If it’s an income generating property, you get that pesky monthly payment down under what the rent income is, and pocket the spread. Minus what your management and maintenance costs of course.