Multi-Family and Apartment Investing
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated over 10 years ago on . Most recent reply
![Luther Smith's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/21214/1624928782-avatar-luther1906.jpg?twic=v1/output=image/crop=1024x1024@0x0/cover=128x128&v=2)
To Re-Fi or not to Re-Fi?
I'm a newbie investor in the NYC area. I'm focused on starting out with small apartment deals through buying and holding. My family currently owns a six unit multifamily free and clear of debt. I was recently talking with a broker and he recommended re-financing the six family first and have that cash on hand before I venture out to look for my first deal. His point being that I shouldn't wait to find a deal and then have to scramble to pull the money out of our existing property to buy.
This sounds right to me, but is it?
Most Popular Reply
![Giovanni Isaksen's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/49761/1621410379-avatar-giovanni_i.jpg?twic=v1/output=image/cover=128x128&v=2)
Just to add on to what @Mike B. said, the $750k proceeds from the refi is 25% down on a $3,000,000 building.
I would go a step even further than @Jerry W. and say don't use the equity in your home to leverage into a deal via a HELOC. People forget that we spent thousands and thousands of years chasing tigers, bears and who knows what out of caves just to secure shelter and now we can buy shelter for little to no money down, but it still is shelter that protects us and our families. The last time people forgot that and started thinking of their home as a cash machine instead of shelter things didn't turn out too well.
Good hunting-