New to the forum and Tacoma real estate

[Joel Jennings]

Hello, I have been listening to bigger pockets for almost 2 years now but this is my first time on the forum. About a year ago my partner and I purchased our first piece of real estate, a duplex in the Lincoln neighborhood. We did some renovations to the property before moving into one of the units and feel we are close to wanting to access the equity for our next multifamily purchase. Any advice as to what our next steps should be is appreciated! Refinancing vs HELOC? Referrals for mortgage brokers who work a lot with BRRRR investors? Or even like minded locals who want to say hi! Thanks in advance!

[Sherief Elbassuoni]

@Joel Jennings, congrats on your first deal.

It depends on how much equity you currently have, the interest rate you had for your current duplex, and what is your current debt to income.

For the first 7 years, a big chunk of your monthly mortgage payment is allocated to interest. If refinance will save you a lot on interest (you can consider that).

For HELOC, I will not consider that unless you can pay back the HELOC in 2021. Current interest rates are historically low, and we are expecting it to stay low through 2021. That said, no one knows what is gonna happen in 2022.

I will send you a message for a lender. She can run the two scenarios for you, and once you put the numbers side by side, the answer will be clear!