Should I refinance/cash out my primary residence to purchase a 4 plex?

[Ruben Canales Jr]

Greetings!

I have a primary mortgage ($195k) and to be paid off in 8 yrs.  I'm interested in refinancing/cash out $200k for a down payment for a four plex.  The 4plex is selling for $999k and cash flows $3k.  If I do the refinance, I will have two 30 yr mortgages.  Is this a worth while real estate investment strategy and opportunity?

Ruben Canales

[Antonette El Baz]

Refinancing or cashing out your primary residence to purchase a 4-plex could be a worthwhile real estate investment strategy, but it depends on your specific financial situation and goals. It's important to consider the potential risks and benefits of such a move, to determine if it is a good decision for you.

In your case, you're looking to cash out $200k for a down payment on a fourplex that is selling for $999k and cash flows $3k. That is a positive cash flow, but you should be aware that the property's value may not appreciate as much as you would like, and you will also have to consider ongoing expenses, such as property management, repairs and maintenance, and property taxes. Additionally, you will have two 30-year mortgages, which means a longer time period to pay off the mortgages, and that may have an impact on your long-term financial goals.

Overall, it's a good idea to consider all the factors and to consult with a financial advisor or real estate professional before making a decision.