Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Marketing Your Property
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 3 years ago on . Most recent reply

User Stats

6
Posts
4
Votes
Sarimar Hernandez
  • Real Estate Agent
  • Lutz, FL
4
Votes |
6
Posts

Refinancing to buy another rental property

Sarimar Hernandez
  • Real Estate Agent
  • Lutz, FL
Posted

I purchased a home last year that I rent and I would like to refinance it to purchase another investment property. The interest rate is currently 3.75 and will increase to 3.875 with the refi. My cash flow will be reduced from $1100.00 to $500.00 but I may be able to cash out about $70K for the next investment. I am a little concerned about the cash flow. I am a Pro member and I need help figuring out if this is a smart move or not. Can someone help me, please? Thank you. 

Most Popular Reply

User Stats

399
Posts
206
Votes
Khaled Morad
  • Lender
  • Tampa, FL
206
Votes |
399
Posts
Khaled Morad
  • Lender
  • Tampa, FL
Replied

Hey Sarimar,

If you investment property is separate from your own finances. In other words, it is self-reliant and pays for itself, I would say it would be worth it if you can purchase another cash-flowing or property. It will take you just under 10 years to save up $70K with your missing cashflow. In that time you can build 10 years of equity in another property and quite possible repeat the refi-to-purchase strategy again.

Being from Tampa also, you will probably know that you cannot find a 200-250K multifamily (especially not cash-flowing) here as mentioned by Joshua. 

Good luck! Interested to hear what you choose to do!

Also, did you get those rates from an actual lender or online marketplace? 

Loading replies...