All Forum Posts by: Nate K.
Nate K. has started 1 posts and replied 3 times.
Post: Cash out refinance - what am I missing
Nate K.Posted
- Providence, RI
- Posts 3
- Votes 0
Edit: $8,400/yr
Post: Cash out refinance - what am I missing
Nate K.Posted
- Providence, RI
- Posts 3
- Votes 0
Brent Coombs
Thank you for the response, what makes you say I'm cash flow negative? Right now I'm +700 per month (8,200/yr)
I can only assume you are going by the 40% of monthly income should go to repairs / maintenance?
If I do get my monthly rents up to $2700 total that will give me $1000/mo in cash flow which shouldn't put me negative correct?
Post: Cash out refinance - what am I missing
Nate K.Posted
- Providence, RI
- Posts 3
- Votes 0
Hi BP,
I was reading a post the other day about dead equity and it got me thinking.
I have a two family multi where I owe ~165k. Tax/insurance/mortgage is $1700/mo (flood insurance is a killer).
I pull in $2500/mo - never had a vacancy since I owned it, building is in amazing condition... I may be raising rents bringing me to $2700/mo when leases end this year.
I'm not sure how to value the building... Zillow estimates it at $280k but we all know that's a crap shoot.
A cash out refi at 25% LTV would put 40-45k in my pocket which would allow a down payment on another building.
Is there anything I am not thinking about?