Where to Invest Cash from Refi???

[Will R.]

Hi there!

I am new to the BP forum and this is my first ever post. That said, I've been listening to the podcast daily for about 6 months :) 

My wife and I bought a home in San Diego about six months ago. The market here is absolutely nuts, and we recently had an appraiser tell us it has gone up about $100K in value. Not bad from an ROI, perspective, but don't think that's very scalable. Lol.

We are considering a cash out refi and reinvesting ~$100K, but we are new to BP and don't know where/how to invest it in a semi-safe way! Our mortgage would increase by ~$500/mo, and it seems like most properties we could afford would BARELY beat that from a cash flows perspective. Factoring in maintenance and property management, it seems like single family investment properties is probably not the way to go.

Please help! I am super eager to learn more about this lovely world. I bought like 6 BP books off Amazon last week and have been avidly going through them all. Absolutely open to investing in markets outside of San Diego and non-single family methods.

Thanks in advance!!!

[Twana Rasoul]

@Will R. Welcome! If you made $100k in 6 months....why invest elsewhere? Sounds like you guys had a hell of a start to your real estate journey, Congrats! I recently did Cash Out Refi's myself and will be personally buying more here in San Diego. Depending on your loan to value...you may not be able to pull out any of the $100k. Lenders will usually loan you around the 75% LTV range.