Updated about 4 years ago on . Most recent reply
FHA Cashout Refinance vs Heloc
Purchased a 4 unit with 10k down @ 270k vacant that had significant deferred maintenance where the property was completely overgrown. I’ve put 15k into and a decent amount of sweat equity this past 15 months.
It’s now renting $4800 a month between all 4 units with two as furnished rentals. Normal long term tenant rates would be 4,000. I believe the property is worth anywhere from 400k-425k.
I want to pull out some of the equity to go purchase another property but don’t know what the best option is to move forward. I have a 2.7% interest rate & pmi now, and am afraid refinancing I will get an interest rate much higher now that it’s an investment property (4%)
It’s a decent amount of financial levers to pull here between the options & want to hear your perspective.
Most Popular Reply
If you are able to remove PMI, that should be your first initiative. How much is the PMI? It may offset the differences in rate on the payment.