Intro from Portland OR + Questions

[J. Bradley N.]

First, let me introduce myself to this great community. My name is Brad, I've had a career as an electrical engineer for the past 10 years. Investing is something that is new to me, but its also very exciting. I've already learned so much from BP and plan on continuing my education.

Let me explain my situation.

I bought my house, which is currently my only property and primary residence, in Portland, OR in the summer of 2013 for $212K. It is a small, single-family bungalow on a 5000 sq. ft. lot zoned for multi-family use. It is right in the middle of an "up-and-coming" neighborhood which has absolutely exploded around us in the last three years. Coffee shops, new restaurants, apartment developments, etc. the place is thriving.

I am currently in the middle of refinancing. The house was appraised two weeks ago (to drop PMI) at $282k. I currently owe about $195k on it. Now, I plan to hold on to this property indefinitely because I expect it to keep appreciating. My fiance and I are planning on living in it for one more year, then renting it out and buying another house in the area or possibly Vancouver, WA.

The other reason I plan on holding on to it is to some day take advantage of its multi-family zoning. I'd like to eventually build two more units on the property and rent those out as well.

So on to my question.

Initially I was going to pull $8k out of the equity to do some minor remodeling, it needs a bit of electrical work and landscaping. HOWEVER, would it make sense to pull as much equity out as possible to use for other investments or as a down payment on our next property? Interest rate on the refinance is 4.125%.

I really like the idea of a low mortgage payment, which is why I didn't want to pull much cash out. But now I'm starting to think this is an opportunity I shouldn't pass up.

Sorry for the long-winded post! If you're still reading, I appreciate any advice on my situation.

Thank you!

-Brad

[Bronson Peralta]

I'm not sure if you looked at this but it was an oversight on my part due to not educating myself. Look to include repairs, vacancy, CapEx, and management in your total expenses for this house. I learned about this a few days ago on BP and realized I am actually down 100 a month on my rental when all of this is incorporated into my expenses.