Is this market a good time to refinance?

[Shane C. Downs]

In this market is it a good time to be doing the BRRRR method or refinancing in general?

[Andrew Gingerich]

When you say good time do you mean based on interest rates? If yes, then I would say yes. Considering that over the last 50 years interest rates likely averaged 6-6.5 and 30 year fixed rates are averaging 4.5-4.75 ish currently. Granted you'll pay a little more for a cashout refi. Maybe 5%, assuming a credit score above 760.

Your other question might be: Is this a good time to be investing in houses that have seen significant appreciation over the last 5- 10 years. Or, is the market too high. I'd say this is a more difficult question to answer. And very regional. But, you can protect yourself in various ways. 1) Don't put every dime in equity all in at once. Rather, average in over the next decade. 2) Buy a house well below market value. Walk away from a deal that you can't get at least a 10% market value discount on. Because you are considering buying a fixer, you likely can get value when you buy.

Finally, if you rent your newly fixed up and refinanced home, how would your finances be affected if the demand for your rental fell and your rents fell 20%? You need to make sure you have enough cash flow to weather decreases in your rental income. 

Taken together, I think it's a great time to buy if you plan/buy right.

Frankly, I think the best investors are those that will be ready and able to put capital to work when over-leveraged folks are stranded. Just ask WB how his rescue of Bank of America is working out for him. :)