Updated over 8 years ago on . Most recent reply
Cashout refi will mess up my cash flow!
should I still do a cash out refi if my cashflow drops down? I have a condo. Usually not a good investment but it used to be my primary that I turned rental 2yrs ago. Right now mortgage is at 4.5% total with taxes and ins. $519/mo, $200/mo HOA. Right now rent is at $900/mo but will go up to $975 in Oct. The refi gives me $18k. New mortgage payment of $975/mo @ 4.62%. With new floors and counter tops it could rent for $1100/mo. I owe 74k on the loan and after refi would be a 93k balance. I also thought about selling it, but it helped me get my next loan since I've had it for 2yrs. So, do I take the cash and refi lowering my cashflow or just get rent up there and save for my next rental?
Dan