New real estate investor

[Richard Camacho]

Hello everyone I’m new to real estate investing and I’m looking to get some thoughts on this issue I have a house in the Atlanta area with some equity I owe about 25,000 and the house is worth about 120,000 The house is owner financed at a 9% interest Would it be a good idea to refinance to purchase my next property as a house hack I would appreciate any general ideas as this high interest-rate environment has kind of throw me off I really appreciate everybody’s input thank you

[Ronnie Galindo]

Hello @Richard Camacho and welcome! So you have just under $100k in equity in your current property? I would say that refinance is a great idea as long as the numbers work! Would this home that you have currently rent for enough to pay the mortgage, taxes, insurance, and any holdings such as vacancy, capital expenditure, maintenance, and property management? If so then I would refinance into a conventional mortgage at roughly the 70% LTV mark. I would then take that left over money (around $59k with the property value at $120k) and then sink that into another property so that you can continue your growth. Interest for homes is high right now but you should be able to get a better rate than 9% as well as if it cashflows, then you're golden! I would use the BP calculators on here and see what ya got! Good luck!