Need Cash Out Refi Advice.

[Bruce Knauff]

Hey all longtime forum reader/podcast watcher new poster here. Last July I finally took the plunge into real estate investing and purchased a SFR in need of some TLC but nothing too major. I lived in it for 6 months which was part of the terms of the grant I got towards the down payment.

Now I have moved out and I am finally renting the property out. Which is great keep in mind where I live houses are very cheap compared to some of the markets I know you guys are in. Here are some of the basic numbers involved. 

I bought the house using a conventional, fixed 20% down 15 yr mortgage for 36k. Since purchase I have improved the property and brought the property value up to somewhere around 60-70k. Caveat here is I haven't had the property appraised I am basing that off the proximity to the local college and other houses selling in the area. (my friend just sold a house a block farther away from campus and several hundred sq. ft. less in worse shape for 60k.) I owe 28k on the house still and would like to refinance, get my cash back out for another deal (20k would replace my costs on the deal), and maybe try to get into a 30 yr to help improve cashflow. My question is what are your guys and gals recommendations or comments on what the best vehicle to get this done is?

Side note: The house is renting at 900 per month currently and taxes, ins, mortgage is 377 per month. I also pay water, sewer, trash usually around 60-65 per month. I feel like I have done pretty well up to this point but am hoping to hear more experienced thoughts on the best way forward.

Thanks,

Bruce

[Bruce Knauff]

@Jaron Walling That is exactly what I was thinking I am afraid of pulling out more than I need to get my initial investment back out. I also don't want to pull so much out it hurts the cashflow. I like homes that need a little help, even around here though like you said prices are following the countries trend and are rising fast. The town I am investing in is a college town so there is a pretty stable market as long as you are within 5 minutes of the college. Sounds like I need to do some more driving for dollars.