Cash Out Refi, Heloc or Sell? Denver SFR

[David Garcia]

Hi everyone, 

Facing the same question probably alot of us are asking ourselves.... do I Sell, Cash out Refi, or Heloc. My wife and I own a 4Bd 2 Bth Bi Level SFR in Lakewood Co, Owe 300K on Mortgage (3.25% fixed, 18 years left on mortgage, $2200 Mortgage/Insurance/Taxes Payment) and property is currently estimated around $600K based on Comps in the area. After Fees/Closing, probably could net $250,000. We currently House Hack and do Short Term Rentals in the lower half of the home, which brings in ~$2700 per month in Cash.

I would like to turn the equity into even higher cash flowing assets using the BRRRR Method in Cincinnti or Cleveland based on population trends, decent rent/price ratios and lower capital requirements to BRRRR.

Selling and Taking the $250K off the table would enable us to launch our BRRRR Business, but we would of course have to rent somewhere else in CO (Not a bad thing, my wife wants to live closer to Boulder) and we would lose the $2700 monthly cash flow from short term rental income. Recognizing that home appreciation is crazy high right now, rates will likely go up in the future due to inflation, I expect the apprecation to slow down in the next year or so (just my hunch).

Cash Out Re-Fing/Heloc is also a potential option to take out ~$180K and use to BRRRR. The only thing I don't like about the Refi, is i'd probalby have to go back to a 30 Year Mortgage. The Heloc could be the best option as we can still live in the house, continue to cash flow with the Short Term Rental.

Interested to hear your thoughts! Thanks and God Bless!