brrr.. refi amount??
almost finished with my first brrr property. i own it outright, and when it's finished it will appraise at close to $135-150k. would you take out the max amount when refinancing, or play it more safe?? my initial thought is to only cash out 50-60k to keep my loan to a minimum, and hopefully pay it off quicker. however, if i cash out more money, then i'd have more cash to immediately invest. thoughts on one way vs the other?? thanks for the input.
adam
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One of the Atlanta area gurus always preached borrowing as much as possible in the years leading up to 2007 crash. For 4 years his properties were being auctioned off at foreclosure Tuesday in Dekalb. He lost everything he built in a lifetime of real estate investing due to negative cash flow. Worst case on maximizing cash flow is you miss out on a few deals but the flip side is leverage maximizes your losses in the downturn if you cannot afford to service the debt load.