Hold or Buy?

[Peter Shah]

I’m working with my father on managing his RE. 

We have one multi family property that is fully paid off and generates roughly $200k in NOI/Cash Flow.

My father is 60 years old.

We have been discussing options on how to move forward. A cash out refinance to buy more property would put a substantial dent in cash flow with current interest rates. Also would come with the stress of a loan, and debt servicing. Not to mention the upkeep of the new property, and its loan stress. 

Would the best option be to just hold? $200k is no small sum of money. 

To obtain $200k worth of cash flow at current interest rates would require around $7M worth of purchased real estate in the NY metro region if they all had loans at their nascent stage. 

What would you do if you were in our position? 

[Shanequa J.]

What are your goals? I'd personally wouldn't refi it.

[Arthur Schwartz]

Consider a cash out refi, at a low LTV, say 25%

[Jacob Sherman]

Quote from @Peter Shah:

I’m working with my father on managing his RE. 

We have one multi family property that is fully paid off and generates roughly $200k in NOI/Cash Flow.

My father is 60 years old.

We have been discussing options on how to move forward. A cash out refinance to buy more property would put a substantial dent in cash flow with current interest rates. Also would come with the stress of a loan, and debt servicing. Not to mention the upkeep of the new property, and its loan stress. 

Would the best option be to just hold? $200k is no small sum of money. 

To obtain $200k worth of cash flow at current interest rates would require around $7M worth of purchased real estate in the NY metro region if they all had loans at their nascent stage. 

What would you do if you were in our position? 

What types of properties are they ? The DSCR loan is a great way to go

[Brandon Croucier]

DSCR Seems like the best product, at lower leverage I have some rates that are even beating rates on primary homes, would love to connect and discuss a bit further.

[Thomas Santella]

Unless you can get very favorable rate terms, It might make sense to wait. Sitting on 200k NOI is an amazing position to be in, and not one you need to exit if the current lending environment and market doesn't favor it.

[Alex Hunt]

Weigh the options. $200k cash flow is awesome, but diversifying & adding another property is also awesome & should increase the cash flow. 
Do you need a max LTV cashout on the $200k property to purchase something else? Have something specific in mind for the next purchase?
if so, take a refi that gives you 20-25% of the new purchase down payment. 
this will allow you to keep the cash flow high on the existing and have those funds as down payment to get a loan on the new.