Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 3 years ago on . Most recent reply

User Stats

10
Posts
1
Votes
Dennis N.
1
Votes |
10
Posts

Cash out or Refi all equity condo

Dennis N.
Posted

Hello fellow real estate mogul/gods, I am new to real estate investing is a complete newbie in this. I am in this scenario right now and would love to seek some advice on how to best strategieze and achieve the goal of building 200k in passive income in 5-10 years? Thanks a lot!!!!! Appreciate your time.

Background:

I have a 1 million dollar condo in a Class A metro city. The condo is completely paid off and is recently built (within 5 years).

Total income: 3.8k

Taxes and HOA: ~800 each combining to around $1650 a month

Net income: ~2.1k a month

I paid in cash ~865k back in 2017.

Personally, I earn a decent income (~180k) and is in late 20s. No debt or any payment.

My goal is to be able to build a 200k net cashflow in 5-10 years, obviously sooner the better.

I have a decent amount saved and is thinking if I should free up more cash by either selling the condo or refi and take around 400k out (interest rate is around 4.5% last I checked) for 30-year fixed.

Any advice or ideas on strategy to achieve the goal of building 200k in passive income? Should I sell or hold the condo?

Any insight is appreciated. Thanks so much!!

Most Popular Reply

User Stats

2,285
Posts
1,995
Votes
Anthony Dooley
  • Investor
  • Columbus, GA
1,995
Votes |
2,285
Posts
Anthony Dooley
  • Investor
  • Columbus, GA
Replied

So what I am reading on your post is that you have $1M invested in a condo that is earning you 2.5%.  My advice is to sell it and invest in something that will at least earn more than inflation. 

Loading replies...