A Owner Occupied Brrr
Hello, my names Ernesto I'm a new investor excited to start my real estate journey. I had a question about my home that is my primary residence. I've owned this home for about 4 years and have done major renovations to the whole home from adding square footage, adding central heat and air conditioning, new roof, new flooring throughout the whole home, total renovation on kitchen with all new appliances and totally renovated both bathrooms with new tile surrounds and tubs etc., new paint in whole home its just about a new home. I currently have a FHA loan with a 3.5% rate and looking for advice and knowledge on pulling out my money I invested in my own home to use towards my first investment property. How would you guys play it out? Would I be able to pull most my invested money out and keep my same mortage payment after going conventional? I still don't fully understand the brrr process on how you pull your money out, wouldnt it raise your mortage higher than before? Or is there a way where you keep the same mortage payment and still be able to pull your initial investment out ? I haven't got a reappraisal yet and my current mortgage payment is $1,500 a month.
Thank you
- Rental Property Investor
- East Wenatchee, WA
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Quote from @Ernesto Barragan JR:Great job, Ernesto.
... primary residence. I've owned this home for about 4 years and have done major renovations to the whole home. I currently have a FHA loan with a 3.5% rate and looking for advice and knowledge on pulling out my money
Since your current rate is 3.5%, I'd look to keep that and add a heloc. This will keep your current mortgage in place but give you access to funds to expand if an opportunity arises.
I got mine from the commercial lending side of my bank. Check with yours.
- Lender
- Austin, TX
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I agree - I would look into a HELOC. Rates are too high right now to do a cash-out refinance and lose the 3.5% rate unless you really really know what you are doing and have a huge opportunity to immediately and purposefully utilize your equity capital