Rockwood, TN · Member since 2017 · 28 posts · 6 votes
So i have alot of equity built up in my cabin, i paid 292 for it at a 2.8 interest rate back in 2020. Now it appraised for 600. So my question how do i tap into that equity without loosing my interest rate? I've thought about a heloc but not sure if someone would do it on a short term rental. So does anybody have any thoughts or suggestions on this
how do i tap into that equity without loosing my interest rate?
That's tough....You probably want a Refi of some sort, but that's gonna raise that rate. Wait til some of the lenders on here check in, they'll have a trick perhaps....
Investor · Flowery Branch, GA · Member since 2019 · 413 posts · 412 votes
4y
Even if you cash out refi into say a 4 or 4.25% rate that is still historically low. Plus you’ll have a couple hundy in your pocket to buy another. Deployed correctly the cash flow from buying a 2nd rental should more than make up for the loss of cash flow from the cash out refi and higher rate.
Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
4y
If you cash out refi and use that capital to bring in a cash flow and or appreciate rate greater than the interest rate difference, this move would make numerical sense. I would go with it!
Rental Property Investor · Stewartsville, NJ · Member since 2016 · 419 posts · 280 votes
4y
For us...we close on a house and do some improvements, and wait for the 6 months to pass by (some lenders impose a waiting period), we then put a HELOC on the home. Then when we see a deal we want to move on, we have cash available to make a deal quickly if needed. At some point in the future I anticipate refinancing into a fixed term.