Payoff Rentals by Refinancing Primary

[Brian Fazekas]

I'm trying to decide the best strategy.  I am looking for cash flow, but also what makes the most sense.  I currently have several different mortgages (most of them are 10 year term with a rate around 4.5%) and a primary mortgage at 3.35%.  With the current market conditions, I have enough equity and can refinance my home for 2.85% while using extra the funds to pay off my rentals.  This would generate about $2,000 monthly positive cash flow (I realize this resets my terms and back at a 30 year mortgage).

I checked with some other lenders for my rentals and they can only offer me a 5 year fixed term that can be renewed or a 30 year term at 4.95%.

What are your thoughts? 

[Cameron Tope]

Hey Brian,

If your goal is cash flow then I would definitely refi your house for 2.85% and payoff the rentals. 

Then get a HELOC on your rentals in case anything comes up and you need cash.

This is a great problem to have!