Refinancing an Investment Property

[Tyrone Dennis]

Hello BP,

I am new to investing in real estate. I am hoping to get some input on refinancing:  strategies, pros and cons, worse case scenarios and any other tips.

I'm aware of the BRRR method. I have 1 rental.

I haven't refinanced, so I don't know how long it takes to get proceeds, whether it's taxable, etc etc...

Someone please give me insight.  Thanks 

[David M.]

@Tyrone Dennis

Loans on investment properties generally require 20% down, but rates are better if you have 25% down.

It sounds like you are asking also about the following. You get the cash as soon as you close. Depends on how they are handling closings in your area. We are still trying to stay away from wire transfers because of all the fraud issues. Otherwise, you get a bank check.

There is no tax involved with the cash you “take out.” If anything, you are looking at taking deductions on the interest portions of your payments. Some of your closing costs maybe tax deductible.

If you took a loan to buy the house in the first place (discussing your cover all bases), generally you can’t refi until you’ve made six payments. It depends on the loan

Was that what you were asking?