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Updated almost 4 years ago on . Most recent reply

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Megan Collins
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Refinancing kills cash flow?

Megan Collins
Posted

Hello! I am new to investing and I currently have one SFR that cashflows about $350/mo and has substantial equity (around $100,000). I am trying to figure out how to fund my next investment purchase, but when I run the numbers for calculating a refi to pull out even just $40,000 of my equity, my cash flow seems to entirely disappear. I feel like I am missing something here... how can I have so much equity and not be able to access it when this is supposedly *the* method? The lender I talked to quoted me 4.5% for 25 years for an investment property.

Thanks in advance for any insight or info!

Megan

Most Popular Reply

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1,013
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Brad Hammond
  • Real Estate Agent
  • Portland, OR
605
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1,013
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Brad Hammond
  • Real Estate Agent
  • Portland, OR
Replied

Hey @Megan Collins, yep I've run into this problem before.  This happens when homes appreciate faster than rent does.  When this happens to me, I end up selling the property and moving to something larger.  That might not be what you want to hear but it would solve your problems.  

  • Brad Hammond

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