Cash out refi. Or sell?

[Jacob Thompson]

Wanting to purchase my first property (or properties) here in 2021 but wondering what other seasoned investors would suggest I do with my current home...

I'm currently in the middle of a remodel of my current home (we cash out refinanced late last year). My home appraised during the refi. Last year for $137,500, we accepted a new loan amount of $110,000 (80% LTV) and after my remodel is done I expect to be in the ballpark of an ARV of $160-$170K?

Would you, as an investor starting out, sale out and collect profit after closing or cash-out refi again and invest in other properties, rent the current home out, buy another home to live in, etc?

Remodel information:

3/1/1 brick home

Complete upstairs rehab (insulation, drywall, new heating/cooling system)

Full bathroom remodel (toilet, flooring, shower, vanity, etc.)

New kitchen appliances

Front and back decks installed

[Jon K.]

Originally posted by @Tanner Sherman:

I would always look to BRRRR the property first. If you can charge high enough rent to still cashflow after refinancing then you can't go wrong with that. Now if you need the remaining 20% of the equity to use towards your new house then it might be a good idea to sell.

Don't forget closing costs on the sale. You won't get the full 20, more like 11 to 13%.