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Updated over 5 years ago,
To Refi or not to Refi that is the question
So my investment group owns 19 SFH that we have bought and have chosen to hold. We currently have 6 houses that we are targeting to refi. The average interest rate for the 5 houses is over 5% but with today's low rates we can get around 4.125%. The 6 houses are valued at 1.2M and we owe 650K on them. Our P&I is currently $4097/mnth for the 6 houses. We are contemplating refinancing the 6 houses into 30 year loans and taking ~$220K in cash out. Our new payment P&I for the 880K loan will be ~$4400/mnth. The three of us are simply of thinking about rewarding ourselves. each taking 70K and some change for a reduction of only $300/mnth cash flow. All 6 of the house cash flow nicely (nicely = $730/mnth per house after PMIT, maintenance and operations). What would you do?