Cash out refinance or sell
Looking for opinions on what my next move should be. Own 2 investment properties plus my primary residence. Here's breakdown:
1st home: paid off (paid 56k) now worth approximately 140k, cash flowing $650.
2nd home: purchased last year and is cash flowing $715, approx 50k in equity.
Primary residence has appreciated well and now has approx. 120k in equity.
Curious if I should get a cash out refinance on my paid off property to acquire two more homes, even if they're not cash flowing all that well. Or should I sell the property outright and use a 1031 to acquire more expensive homes. I'm 30 years old, so ultimate goal is to build control and wealth over as much real estate as I can. Any thoughts and opinions would be greatly appreciated!
Most Popular Reply
Your returns are very good. I can't justify a cash out refinance or a sale on either of these homes. You have a sound goal when you say you want to build control over as much real estate as you can. But you're already receiving excellent returns on your equity.
My 2 cents is you should hang onto these homes, increase your income, decrease your expenses, and buy more rentals with the extra money you save.