Cash-out Refinance advice for next property

[Kristy Pedersen]

I’m a 28 y/o female who just finished a owner occupied renovation using an FHA 203k renovation loan. I put 3.5% down, purchased the property at $110,000 and put another $110,000 into it. I’m estimating because of the market and recent sales on the same block my home is worth $315,000 now. I’d like to take the equity I’ve earned and put it into another property, which from the lenders I’ve been getting estimates from sounds like I can get between 24k-28k cash out. The first property I found I had been looking for months and then finally got a tip from a real estate investor friend. I need some advice on how I should proceed forward. I like the process of rehabbing a home and would like to do another rehab but don’t know what I can really do with little cash on hand in the Philadelphia market. Anyone in the philly area have tips on how to begin the flipping process with little money to start?

[Jason D.]

@Kristine Pedersen personally, I would not refinance. You're paying very low interest and any refinance will likely cost more than the $20k cash out, over the long run. I would loom into a HELOC, that way you keep the low interest rate, but also have liquidity for investing, that you can use over again.