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General Landlording & Rental Properties

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David K.
  • Investor
  • Attleboro, MA
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137
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Refi to pay for repairs but generate rent increases

David K.
  • Investor
  • Attleboro, MA
Posted Nov 14 2019, 18:28

I've got a few vacancies for long term tenants right now.  With proper upgrades I can generate an additional $500 per month in rents.  However between needing two new roofs, and other repairs I will soon be out close to $40,000.  I was thinking of refinancing one property whereupon my payment would increase $180 per month, and would pull 40k out of it. The new loan would be for $150k, with a value of $275k.    I have 25 years left on my current mortgage.  The new mortgage interest rate would be the same as the previous loan. 

I wanted to pay this off, however I'm starting to think otherwise.  I'd still be ahead of the game from a cashflow standpoint.  With so much equity sitting in one of these properties, I'm really debating this instead of exhausting my savings.  For the record all my properties have low mortgages compared to values, and with my credit and income the refi won't be an issue.

Just wondering what others who have 10+ units do.....

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