All Forum Posts by: Hanan K.

 I am looking to refinance an investment property. The loan would be around 450K. The property value is 650K. I am looking to get a better rate. Where are rates on investment properties?

Hello BP Colleagues! I'm looking to refinance an investment property and am wondering what sort of rates are being offered currently for investment homes. Also, if you have any lender recommendations with low fees, I would be very grateful! Thank you in advance!

Thanks for the thorough response and analysis @Joe Splitrock and @Steve Vaughan. You both brought up very good points on interest rates, inflation and tax deductions! 

It's been very interesting reading and considering all of the of the different views on this subject. In the end, I've realized my goals are 1) Financial stability 2)Growth. With that being said, I like the idea of creating a larger emergency fund we can draw upon if we find another killer deal that we just can't pass on. Also, should we endure another market correction, atleast we would have the funds to carry out any mortgage obligations in the unlikely event we face increased vacancy (very uncommon in my area). We will also be in a better position to take advantage of lower prices. Thank you both for your input! Much appreciated!

Thank you for adding balance and clarity @Russ Smith. I was there in 2007-2008 and watched my real estate investor friend's portfolios collapse one by one. It's a scary thing to witness first hand and it really motivates you to try to be conservative while not inhibiting growth at the same time.

@Vitaliy Bondar Not odd at all! I've always been taught to avoid it and have been able to get the properties I have specifically because of my low DTI and the equity positions in our homes. You are correct that it fees up possibilities and helps us to sleep better. Thank you for your input.

@Vitaliy Bondar 450K on a SFR with an ADU valued at 725K - purchased 2.5 years ago.

@Charles Kennedy Thanks for the detailed response. My husband and I both earn good W2 income and are essentially house hacking - so our expenses are very low. We are saving around 10-12K per month and could essentially come up with a 25% down payment every 10-15 months (depending on the price of the home). I just worry we may be putting too many eggs in one basket if that makes sense. We do max out our 401K options at work but other than that have stayed out of stocks. 

I hadn't really thought about it in terms of interest savings vs. investing opportunities and you laid out a good point. I was more focusing on risk elimination since we are undoubtedly due for a market correction at some point. I think I may follow your advice and just wait for the next killer deal. Thanks again!

@Nate Waters That's a really good strategy. I'm so torn. A part of me (the more risk averse part) is more inclined to focus on debt paydown and stabilizing and preparing the portfolio for fluctuations in the market. My entrepreneurial side says keep investing. Your strategy kind of meets me in the middle. Thanks for your input. 

@Charles Kennedy Good point. I should haveexplaines that the properties have healthy equity positions - 25-35%. 

Hey BP community! I would be very interested in your thoughts on feedback. Here's my question:

At what point do you believe it is wise to stop reinvesting your cashflow into more properties and start focusing on principal pay down on your current buy and hold portfolio? We just closed on our third rental, a SFR with a detached second home ( 2 rentals in one). Although we have a small portfolio, the value of the homes is almost 2 million dollars since we are in such a high price area. We have very stable cashflow and we both work full time jobs (though I do not need to). I'm wondering whether it's wiser to start saving for the next one or start paying down some of our homes. Our interest rates are between 3.5%-4.675% on the three rentals. Would love to hear your thoughts!