Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago,

User Stats

1
Posts
0
Votes
Joseph Roman
  • Investor
  • Boca Raton, FL
0
Votes |
1
Posts

Should I refinance/cash-out?

Joseph Roman
  • Investor
  • Boca Raton, FL
Posted

Back in 2013 I bought a 1 bedroom condo downtown for $150k on a 5/1 ARM with 2.875%. I was single and living in it, and the idea was to pay it off very quickly then rent it out. I paid the loan down to $85k so far.

However, I got married, kids, plans changed.  So now I am living in a home and have been renting the condo out.

So I have a lot of money tied up in this property and would like to have that money to purchase a second rental.  However, I am having a problem doing the math in my head and figuring out the best option to get a second rental.

The 5/1 ARM will be up next year so I am sure my rate will increase.  I owe $85k and the condo is worth $175k+.  Am I right in thinking I should just cash-out refinance it and use the money to buy another rental or is this a bad idea?

Loading replies...