Dayton, OH Investors | Time to refi?

[Laine Furukawa]

Seeing 3.6 - 3.9% for 30 year fix. Current homes in Dayton, Ohio (Kettering, Centerville, Montgomery) @ 4.25%. Would now be a good time to refi? Would it make a difference in lowering my monthly and raising cash flow? Any credit union recommendations for refi? I asked a few months before this drop and the consensus at the time was it wouldn’t make much difference. I know Ohio is not much of an appreciation market. Would like to know what other Dayton Ohio investors think or are doing.

[Aaron DeLaO]

3.6 -3.6% non-owner occupied 30 year fixed? Where are you getting that? Hook me up! I would say that the answer to your question depends on your goals. If you've owned those rentals for a long time when you refi into another 30 yr. fixed you are adding to the term so you won't be paying them off on the same schedule. You may also end up with a rental that has a mortgage balance but you've depreciated it as much as you can and you don't have that expense anymore. Or, maybe paying them off is not the goal. If you're pulling cash out will you make enough money with that money to make it worth while? Also to be considered is if you sell them you will have depreciation recapture and capital gains. Refinancing and pulling cash out leaves you with less proceeds upon sale to pay for those taxes or apply to the next purchase through a 1031 exchange. Just a few thoughts and I'm not a tax adviser (disclaimer).