Refi Til Ya Die Strategy

[Mark-Anthony Villaflor]

In this time of COVID I'm looking at purchasing extra property but am looking at getting the downpayment from cash refinancing properties. I listen to several podcasts aside from Bigger Pockets- Real Estate Guys and Jason Hartman. I got interested in the concept of "refi til ya die" when I heard it on Jason's Creating Wealth podcast. 

@Jason Hartman

Are any of you familiar with the concept or deploying it? 

Summary of it is that you buy and hold rental properties for the long haul building weatlh through the cash flow, mortgage being paid and the appreciation. After some time you'd refinance higher than the original purchase price (being mindful of cash flow). This then would go to the purchase of a new property. Also, the cash refinance wouldn't be taxed so you'd be saving on taxes as well?

My understanding on keeping a high loan balance is that banks don't want to take the property back and would work with ya. In cases like COVID folks who have high loan balances simply went into forbearance. They don't want you to outright default. 

I'd love to hear folks thoughts on this. I've got a property in Houston purchased from 2012 and have a decent amount of equity so am trying to sort out this next move and the long-term play.

@Jason Hartman