Refinance duplex or not?

[Ashley Kisselman]

Hi guys! Refi question here: I bought a duplex in 2010 with 0 down at 3.625% and have had it rented since then. I want to pull some of the equity because it has almost doubled in value (estimated) but I’m not sure if refinance is the way to go. Any suggestions? My goal is to buy another property and replace the roof on the duplex.

[Shaun Weekes]

@Ashley Kisselman

If you're using the cash to buy and hold a cash out refinance will be cheaper in the long run. If you're using the BRRRR strategy and you plan on paying back the HELOC within 12 months then that's the way to go. Although a HELOC has little to no cost it's an interest only payment and will fluctuate based on the prime rate. A cash out refinance means that you'll be paying more money each month but at least you know that the dollar amount will never change.

Are you looking to buy and hold or BRRRR?