Updated about 5 years ago on . Most recent reply
My first fixer rented - Should I refinance?
Hello!
I purchased my first fixer rental property back in May this year for 220k$ and I totally remodeled by myself and now it's worth 300k.
The house got rented very quickly for 1500$, with a cashflow of 300$ after all opex, capex expenses.
In May I locked the rate at 3.75%, and now refinance rates are close to 1 point less, 2,75%.
Wondering if it's worth it for me to refinance and get 100$ less in payments every month? Also considering the cash-out, but if I don't need the money to buy another property, is there really any benefit of doing the cash-out? most likely the rate would be higher for the cash out than what I'm actually getting.
Thank you upfront for your responses!
Most Popular Reply
Are you sure you can get 2.75% for an investment property? I'm seeing near 3.5% here for investment. I'm only seeing sub 3% for primary homes. Assuming your rate is accurate and it will save you $100 a month, do the math. How many months will it take to recoup all of the new closing costs? Generally if you plan to keep it for a while and you can recoup the costs before you sell it in the future, it was an OK decision to refinance.