Advice? Refinancing home and turning into rental property
Hey everyone!
I am new to real estate investing and looking to get my foot in the door.
I have been living in my Townhome for 2 years. I am looking at refinancing and then in Spring 2021 turning it into a rental property (and potentially moving in with the gf - so no 'new' mortgages). My refinance mortgage would be for roughly $200K with property value around $285K-$290K. The Townhome was built in 2000/2001 so it is fairly new.
- would you enter this into the BP rental property tool for the $200k with all of it being financed? Or how would you use the tool to calculate the ROI as it has not been rented out since the initial purchase date?
- also, with this being a Townhome (HOA fee covering all exterior/driveway/siding/roof/etc.), how much capital expenditure would you include compared to normal?
- I'm not sure exactly how cashout options work... but is that something you would consider (would I even be able to at those numbers?) in order to have a down payment for a second rental property?
Any advice would be much appreciated! Thanks!