All Forum Posts by: Steve Brooks

I wanted to say thank you to the members that replied. I realized that I was thinking like a homeowner and not like an investor. I am just getting started in investing so I have some mental shifts to make it seems. I have started the refi process and will use the cash I get to invest in other properties. Thank you.

Yes, it was an FHA loan. It was originated just before the lifetime rule of PMI went into effect. It will go away, but only after the loan amount is paid down.

But I really wanted the cake after I ate it! 

Just kidding (sort of), I understand. I do feel that is the best option I was just looking for some opinions on whether it was a good move or not and if I might be missing something. I don't plan on taking out too much of the equity so that cash flow is still positive after mortgage payment, taxes, and insurance.

I have tried. They said it is based on the original loan amount being paid down, not equity. That was what I misunderstood and why it is still in effect.

Hello all,

I have read and learned a lot over the years. I have never posted or been in a position of actually making things happen before. I am not sure about the best thing to do for my situation. I will give details and would like to see if anyone more knowledgeable/experienced would be able to help me decide the best course of action and hopefully why so I can learn more.

We currently live in a SFR.

It is worth approx $450,000.00

We owe approx $175,000.00 on it.

We are approx 8 years into the mortgage. It is at 3.74%

The mortgage currently has PMI, I misunderstood what made it go away and now interest rates are higher so I thought I should just let it get paid down normally, hopefully paying more principal in the future to make it go away. Other than the PMI, I think it is a pretty good situation.

The dilemma is this. We are going to be moving out of the country soon and have found a renter for the home. In attempting to follow the BRRR strategy I was thinking to refinance and take out some cash to be in a position to purchase a duplex or similar after we move. The problem for me is that the new loan would be at approx 4% or so and it will reset the 8 years we already have into paying the mortgage. If we don't do this we may have a harder time accessing the equity because of work history and it may be more expensive as either a 2nd loan/HELOC or refinanced as an investment property.

Would you please share your thoughts?

Let me know if I left out any important details.