How does refinancing (for investments) impact your credit?

[Zacher Bayonne]

Hi all,

I am a new investor who is interested in buying a duplex in Baltimore, MD. Soon after making the purchase, I would like to refinance and pull my capital out to continue investing. For those who have done this, how has refinancing affected your credit? Will doing this method decrease my chances of securing more financing from community banks for future endeavors?

[Melissa Kirchhoff]

@Zacher Bayonne - Anyone correct me if I'm wrong, but I believe it's like obtaining any other loan -- it does drive it down at first because you're "taking out money" but as you make payments it generally raises it. But I don't believe there's really a hard and fast rule about this...

However, I feel like anytime you do take out a loan or open a new credit card, etc, it opens the doors. I took out a personal loan and opened a new CC recently for an investment and I feel like before people were slowly backing away from me in terms of offering me a personal loan, and now I get like 50 million offers a day. TAKE MY MONEY says my mailbox...

So if it's what you need to do, do it, and just make sure you make those payments and allow yourself a little time to recover (if needed) before moving on to the next investment.