Financing advice/options for first REI

[Jeffrey M.]

Hi folks, I am running numbers on a SFR here in Spokane using the tools here on BP. To make the property "cash flow" positively I really need a loan with IR of <4.25% and obviously the lower the better. I have good credit >780 and own a home on the south hill outright, mortgage free.

So far the best I could do so far with a conventional 30 year fixed loan (for a 2nd home/investment property) was 4.375% with a west-side lender out of Renton. Everyone else seems to be high 4's or low 5's.

At 4.375% my calculators tell me that I could get positive cash flow but cash on cash ROI is 2-4%. This makes me wary on making an offer.

I was told to investigate HELOC but lenders are telling me interest rates will be higher than above so that doesn't sound feasible.

I am now investigating "cash-out refi" on the primary rez. I was wondering what others know of this option and what advice you might have or what the downsides there are? Am I leaving out other options?

Thanks for any thoughts and input.