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Updated over 3 years ago on . Most recent reply
Need Cash Out Refi Advice.
Hey all longtime forum reader/podcast watcher new poster here. Last July I finally took the plunge into real estate investing and purchased a SFR in need of some TLC but nothing too major. I lived in it for 6 months which was part of the terms of the grant I got towards the down payment.
Now I have moved out and I am finally renting the property out. Which is great keep in mind where I live houses are very cheap compared to some of the markets I know you guys are in. Here are some of the basic numbers involved.
I bought the house using a conventional, fixed 20% down 15 yr mortgage for 36k. Since purchase I have improved the property and brought the property value up to somewhere around 60-70k. Caveat here is I haven't had the property appraised I am basing that off the proximity to the local college and other houses selling in the area. (my friend just sold a house a block farther away from campus and several hundred sq. ft. less in worse shape for 60k.) I owe 28k on the house still and would like to refinance, get my cash back out for another deal (20k would replace my costs on the deal), and maybe try to get into a 30 yr to help improve cashflow. My question is what are your guys and gals recommendations or comments on what the best vehicle to get this done is?
Side note: The house is renting at 900 per month currently and taxes, ins, mortgage is 377 per month. I also pay water, sewer, trash usually around 60-65 per month. I feel like I have done pretty well up to this point but am hoping to hear more experienced thoughts on the best way forward.
Thanks,
Bruce
Most Popular Reply
@Andrew Postell Thanks for the information I was not aware there were state specific forums here, I will definitely be checking that out as well as Meetup.com!
@Caleb Brown Thanks as well I will ask for some comps, I am not sure yet. My initial thoughts are to continue brrring and trying to buildup cashflow. I have also thought about trying an AirBNB. I really like the potential returns on those have done any of them?