BRRRR Appraisal came back too High

[Mohsin Mazhar]

Hi everyone.

I purchased a home and did a BRRR on it and the appraisal came back higher than I expected. Which is a great thing and I hate to complain about it. But because the interest rates are so high if I pull out the 25% LTV my mortgage comes back $300/month higher than I expected it to be and I will be operating at a net loss.

To my understanding my options are

1. absorb the 300/month and wait until Interest rate drop and refinance.

2. Leave more than 25% LTV which will decrease my PMI and allow to break even/take profit.

What would you guys advise me to do?

Fortunately, I don’t need to take out the money to pay any lenders are to cover any fees. I’m just using it to invest in my next property.

[Alex Bekeza]

Take the lower LTV (which likely gets you a lower rate) to stay cash flow positive, achieve the original stated goal, and call it a win!