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Updated almost 4 years ago on . Most recent reply

Refinancing kills cash flow?
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

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