Updated over 1 year ago on . Most recent reply
Refinance on Investment Property
Hello all, I inherited a duplex fully paid off. I took out a mortgage on the property in November to help make repairs and rent it out. The loan amount was for 153,000 and the property was appraised at 220,000 before repairs. Repairs will be done this February and both sides will be rented out. Will the bank allow me to refinance the property again to tap into equity after the repairs and new appraisal? I would like to put the money into purchasing another investment property. Thanks in adavance for the information!
Most Popular Reply
@Stacie Telles Assuming you took out a conventional mortgage on the property you won't be able to refinance for at least 12 months. At least now your tax basis is $220k ;-)
What was the extent of the repairs? Generally speaking repairs don't add much value. If you remodeled, added a room, replaced a roof, painted, boosted the curb appeal, etc. that's a different story. If it costs you thousands to refinance it needs to be worth it.
I wouldn't touch your current loan unless rates drop 1-2%. The odds of that happening in 2025 are pretty slim. Play the long game and hold onto that equity.