Appraisal comes back high.

[Susie Ivanov]

I am working on my first BRRRR and just finishing up the rehab. I purchased the property in Nov, 2021 and at the time when I pulled comps I was looking at between 160K-180K. I had budgeted for 160K for the refi and rent would be around 1600 per mo which would cash flow 200-300/mo. Now pulling comps they are more north of 200K. I am thinking if the appraisal value comes higher I could either:

1. Still borrow that money with potentially less monthly cash flow for the first few years on this property but giving me more capital to scale, OR

2. Only take the 160K as planned which would still not leave any capital in the property. 

Any advice or a hidden 3rd option I have not considered?  Thanks so much for any expertise/insights! 

[Jon Kelly]

@Susie Ivanov would you rather have $40k today or $300/mo? It will take you 11+ years to make $40k from $300/mo. 

It also depends on what you will do with the money... If you use the $40k to buy another investment property with 12%+ CoC return that would be a great option. If you use $40k to take a trip to Vegas and gamble your money away, then I would go with $300/mo.

I would take the most cash out as possible. Your lender may have limitations on how much you can take out.