Cash-Out Refi and other tools for accelerated acquisitions.

[Nick Moore]

Guys - I HAVE to stop letting people borrow my books. Currently can't find my BRRR book and am just too zapped to make sense of what the internet is telling me in regard to Cash-Out Refinance.

Long story a little less long, my wife and I are looking ahead to acquiring our second investment property. Since we just got our first property in November, it might even be too early to talk much about leveraging equity.

Instead of typing out all the things I know about this stuff, I'm just going to play the noob. My wife and I scooped up our duplex at $109/sq ft with renovated *SFH* going for $150-160/sqft - obviously not a 1:1 comp, so this may not be the best example. Ignoring that stipulation, let's say we finish remodeling/reno at the end of March and it goes from the market value (235k) to 334k. We paid 8k for a 3.5 FHA DP, so not much equity in that sense.

So obviously I'd like to know if that's even worth pursuing, but honestly I just want to wrap my head around the nature of the Cash-Out Refi - how would this be done if it actually (I don't think it will) appraised around 334k? I'd really like to focus on how the mortgage would be different, because that would affect the cash flow, right?

Signed,

Sorry Sometimes My Brain Is Mush Because 11th Grade Students