Updated over 3 years ago on . Most recent reply
The "Refinance" Part
Hey guys, so I'm currently in the "Refinance" portion of my second BRRRR deal on a property that was purchased all cash- I just locked down a rate of 5.99%... definitely not ideal when compared to my first deal over a year ago in which I locked in a 3.99% 30 year fixed. But as we all know, interest rates are on the move and like my agent says, they could go much higher and we don't know what the future will hold. So best to lock in now while rates are still historically low, right?
That said, here are some of the rocky details: This property was purchased for $130k and after ~27k in repairs, it appraised for $185k. I will be getting back roughly 75% of the ARV ($136.5k) which totals out to $128,567 after closing costs. Estimated total monthly payment is around $1,020 a month. I currently receive $1650 a month in rent- it's cash flowing fairly well.
The thing is, home prices have gone up a crazy amount in just one year in my market- should I take the 5.99% and cash this money out in search of another deal or just wait, pocket the rental income and standby- and hope interest rates don't keep skyrocketing? Thank you!