Wait to Refinance, or do it now?

[Bryce Nurding]

Hello,

I bought a duplex in Pensacola $75,000 under appraised value, in an amazing location. Bought it for $300,000, it appraised for $375,000, and the gross rent is $2,625.

My lender only lets me pull out 80% of the purchase price right now. $240,000. But if I wait another 3 (1/2) months, I can pull out $280,000, because I can go off the appraised value then. Interest rates decreasing a little more will be necessary to make this possible, too (DSCR loan).

Also I will have another deal refinanced by then and gain about $70,000 of capital from refinancing that. So, by waiting until approximately February (time for everything to stabilize and to pull funds out), I can have an extra $110,000 of investable capital.

Thoughts?

[Matt Jones]

@Bryce Nurding it sounds like you have a solid plan.  Unless you have an immediate need for the cash I'd wait until I could pull out the extra $40k.  As another poster mentioned rates are lower than they've been in the previous 18+ months but unless some very surprising economic data comes out between now and when you did your refi it seems unlikely that rates are going up in the short term and there is at least a decent chance that rates drop a little more before then.  That said, I wouldn't let projecting rates factor into my decision as much as whether or not you want to pull the extra $$ out.