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Cash Out Refinance Question
I own a 1-bed 1-bath condo in Cleveland, Ohio that was purchased in full for $50,000. We had the kitchen completely remodeled and now the condo is about $60,000. There is 1 renter there who is paying $800 plus utilities. I pay the HOA cost every month which is $300, insurance $40, and taxes $60. So my net after taking all of this out is about $400 per month.
I'd like to put down-payments on a new property or two in the near future so I figured my best option to keep my velocity of money rolling was to do a cash-out refi on the condo. I started working with a mortgage company in Cleveland and I've been now told that they will only go up to 75% which would give me $45,000 to use for other down-payments. I'd imagine I'll pay around $5000 in closing costs for the refi as well.
The agent quoted me a rate of 5.125% which is about a payment $245 plus taxes and insurance so I'd end up paying the mortgage company about $350. I'd like to get peoples thoughts on whether this would be a good deal because Im spending most of my rent profit from the condo to pay for the cash-out loan.
I know David Greene talks alot about getting cash-out refinances but I guess I wasnt paying attention to if he talks about the fees and cost of paying the loans back.
Thanks in advance for your help, and let me know if I need to give any more details.