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Updated about 1 year ago,
Cash out Refinance or Not
I’ve got an 8 unit paid off. 4 units are renovated, 2 of the others were renovated recently but not to my standard within the past 4 years, one the tenant is a slob and the 8th has a family which is an orderly and very clean hoarding situation.
If appraised should come in around $800,000+. Gross rents are $85,000. Net should be about $50,000 once the heat finishes getting converted to tenants paying in another 3 weeks.
I’m currently cash poor and property rich. I’m wondering if I should cash out $250,000 once the heating is done which would leave a monthly mortgage of approximately $2000 and an annual cash flow of around $25,000.
My current area has a price point of about $400,000 so am thinking of going out of state where I might be able to buy 2 properties or more with leverage and increase the cash flow to $3000+ per month.
Should I
A: stay with the 1 building paid off in these uncertain times with the ability to cash out later
B: cash out and buy local
C: cash out and move to investing out of state building another team and maximizing leverage to increase cash flow and move closer to my goal of retiring from my W-2 in the next few years?
I’ve currently got 7 buildings with 25 doors but only $5000 cash flow with the local market which averages $200 per door
Thanks