Tips to do a Cash Out Refinance as an Owner-Occupant

[Brad Jacobson]

Hi Everyone,

I currently owe about $195k on my primary mortgage and after studying comps closely (especially with my next door neighbor selling last month) I believe the house will appraise for $280k+.

My mortgage still contains PMI and is currently at about $1,200/month. I would like to refinance (instead of just removing PMI) and cash-out to help me start BRRRing (thank you David Greene!) I don't have much refi knowledge, what would you do as an experienced investor?

1. Refi at 80% LTV and cash out about $40k while still removing PMI?

2. Refi at 90% LTV? That would be amazing...

- Will I still have to pay PMI with this option? How does that work?

- I'm thinking about turning the home into a rental soon, after finding a good house hacking option. Does the 90% LTV only work for non-owner occupants?

3. Any tips for maximizing an appraisal (aside from a great presentation of the house)?

Thank you all in advance!

[Jake S.]

Hey @Brad Jacobson! I'd go with the 80% LTV to give your self a little wiggle room during any market fluctuation and you also wouldn't have any PMI

Would your current home cash flow after you consider all costs/budgeted expenses (Mortgage, tax, insurance, repairs, capex, vacancy, mangagement, etc.) What are the rent comps?

I believe @Mindy Jensen has a book about how to maximize appraisal value of your home!