Cash out Refinance on my primary home??

[Denis Moreira]

Hi BP,

I bought a primary home in 2009 for $85k in Miami. It's worth about $135k-$140k right now and i owe 72k on the loan.

I'd like to pull the equity on it which would result in $22-26k (75% LTV) after closing costs. The home would then be considered an investment property, no longer primary. I will use the proceeds as a downpayment on another property (multifam). Is this a good idea? Or is that amount of cash not worth pulling out because of the associated closing costs & appraisal fee to tap it?

Should I instead consider a HELOC?

Thanks for your help!

Denis

[Denis Moreira]

Steve Vaughan thanks for pointing out the tax implications of converting my primary to an investment property! You are right I will do the HELOC strategy instead.

Thank you so much!